Streaming service Spotify announced today that the service now has more than 600 million monthly active users. The company said in its fourth-quarter 2023 earnings report that it added 28 million users in the quarter, marking the second-largest quarterly gain in the company's history.
The Sweden-based company noted that in addition to now having 602 million users, the service has more than 236 million paid users, a 15% year-over-year growth. Last year, Spotify raised prices for its premium subscription tier in the United States for the first time from $9.99 per month to $10.99 per month.
The company said subscriber growth was led by the Rest of the World and Latin America, which represents 35% of total paid users.
Additionally, Spotify said its year-end Spotify Wrapped campaign, which gives users insight into what they consumed on the platform, attracted more than 225 million users.
In November, the company announced that premium users in the US will get 15 hours of listening per month on 200,000 titles. It also partnered with TikTok to allow users to save a song to a clip directly in the Spotify app.
The company earned €3.7 billion ($3.97 billion) in revenue with year-on-year growth of 16%. It posted an operating loss of €75 million, better than last year's loss of €231 million over the same period. However, Spotify made 32 million euros in profits in the third quarter of 2023. The company's advertising revenue has reached an all-time high of 501 million euros with a year-on-year growth of 12%.
In December, the company cut 17% of its workforce, or about 1,500 people, to become more “productive and efficient.”
Last month, Spotify showed mockups of how EU users could buy subscriptions and add-ons like audiobooks on iPhones once the Digital Markets Act (DMA) comes into force. Days later, Apple released its guidelines on changes to the App Store to comply with the new rules, including a new “basic technology fee” for more than one million annual downloads. In response, Spotify called Apple's changes “extortion” and a “complete and total farce.”
