Any product has its life cycle, and even as Spotify continues to expand globally and its user base continues to grow, there are also signs that Spotify is experiencing a growth crisis. In 2020, due to the epidemic, music consumption in travel scenarios has been greatly reduced, and the industry is generally worried about the growth of streaming music platforms such as Spotify and Apple Music. Indeed, as most people expected, Spotify's advertising business has been affected, but the good news is that the number of paid subscriptions is still growing.
According to Spotify's financial data for the first quarter of 2020 released on April 29, advertising revenue in the first quarter of 2020 was 148 million euros as of March 31, a year-on-year increase of 17%, but compared to the job title email list fourth quarter of 2019. 217 million euros, a significant decrease of 32%. On the other hand, the growth of monthly active users and paying users has kept Spotify from panicking too much. Data shows that in the first quarter, Spotify’s total global monthly active users reached 286 million,
an increase of 15 million month-on-month and a year-on-year increase of 69 million. Among them, paying users reached 130 million, an increase of 6 million compared to the fourth quarter of 2019. Compared with the first quarter of 2019, the number of paid subscribers in the first quarter of 2020 increased by 30 million, a year-on-year increase of 31%, and the growth rate is still gratifying. But we know that any product has its life cycle, and even as Spotify continues to expand globally, its user base continues to grow, and there are signs that Spotify is experiencing a growth crisis.
01 The number of paying people or ARPU, how to evaluate Spotify's paid business? On May 4, IFPI released the "2019 Global Music Report". Data shows that in 2019, the global recorded music market reached US$20.2 billion, of which streaming media was US$11.4 billion, accounting for 56.1% of total revenue. It's clear that streaming is already a driver of the entire recorded music market, but we've noticed that this driver doesn't seem to be as powerful as it used to be.
By comparison, streaming revenue in 2019 increased by $2.2 billion compared to $9.2 billion in 2018, and by $2.7 billion in 2018 compared to $6.5 billion in 2017. This means that overall streaming revenue (including audio/video and advertising/paid subscriptions) in 2019 was down $500 million from the previous year, with annual growth trending slower.