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Spotify Revenue rose to a record first quarter, driven by growth in paying subscribers.
The streaming audio platform’s 22% increase in monthly active users was attributed to “increased reactivations, improved retention and increased marketing efficiency,” the company said. earnings report Tuesday (April 25th).
According to the report, Spotify has 515 million active users, surpassing the forecast of 500 million and posting its biggest ever growth in the first quarter. According to the company, growth is across all age groups in both developed and developing markets.
Paid subscribers grew 15% to 210 million, and revenue from premium memberships reached just under $3 billion, up 14% from last year.
Spotify has not disclosed any plans to raise subscription prices, as platforms like Apple and Netflix have recently done. “Keep or Cut” Debate It happens in most households. “
As stated in April 2023 “Subscription Commerce Readiness Report” According to a collaboration between PYMNTS and sticky.io, “The most common reason for cancellation is cost, with 56% of consumers canceling their subscription for this reason in the last 12 months.”
Additionally, the latest version of PYMNTS’ “Subscription Commerce Conversion Index: Subscribers Want Affordability and Convenience” 53% of consumers paying for streaming subscriptions and 48% of consumers paying for memberships said they would cancel their service if it prevented their ability to pay more significant fees. got it.
“The primary factor in determining what constitutes a worthwhile subscription often has to do with the ability of consumers to achieve their intended purpose when considering options,” said the study. .
PYMNTS spoke with Spotify’s Vice President and Global Head of Commerce and Customer Service last month. Sandra Arzetta About her company’s efforts payment options.
This platform is affiliated with Google and UPI. The company uses them to help further expand payment options for its users, which it claims is an important part of the overall customer experience.
Alzetta said Spotify accepts 130 different payment types around the world and has a better understanding of local and local payment preferences in each market.
“Why are we doing this? We are doing this because we know that if done right, it will have a noticeable impact on users’ ability to pay,” she said. Told. When users come to pay, product representatives, etc. have the payment method they want to use.
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