Spotify’s Revenue by Segment (2016-2023)

This statistic highlights Spotify’s Revenue by Segment, split between Ad-Supported and Premium, reported from 2016 Q1 onwards

Spotify operates under a freemium business model (basic services are free, while additional features are offered via paid subscriptions). Spotify makes money by charging customers for premium streaming subscriptions and charging outside companies for advertising space. Users can select from a variety of premium choices, including solo, pair, family, and student.

Spotify Revenue by Segment

(All the figures are in millions, except percentage)

Spotify generated € 3042 million in revenue in Q1 2023. Total revenue increased 14.32% year on year from € 2661 million in Q1 2022.

Ad-Supporter

A Spotify ad-supporter is someone who chooses to utilize the free version of Spotify, which is ad-supported. Users who choose this edition have access to a large library of music and podcasts without the requirement for a premium subscription. These viewers will hear and see audio and visual adverts scattered between songs while listening to their favorite music. Ad supporters help to sustain the free service because advertising income helps Spotify distribute music to millions of users worldwide. Individuals can use this model to discover new artists, genres, and podcasts while still having an enjoyable listening experience, although with periodic interruptions.

Spotify generated € 329 million in ad revenue in Q1 2023. This segment provided 10.81% of total revenue earned in Q1 2023 and increased 16.67% year on year from € 282 in Q1 2022.

Premium

Spotify Premium is a subscription-based music streaming service that provides its subscribers with a better listening experience. Spotify Premium gives you access to a massive library of over 70 million songs, allowing you to discover new genres and artists. The premium edition removes advertisements, allowing for uninterrupted music playback. You can also download your favorite music and playlists for offline listening, which is ideal for when you’re on the go or in locations with limited internet access. Spotify Premium also allows for high-quality audio streaming, providing crystal-clear sound and immersive listening experiences. Spotify Premium also includes personalized suggestions, curated playlists, and exclusive content from your favorite artists, making it a must-have for music fans.

The Premium service generated € 2713 million in revenue in Q1 2023, accounting for 89.18% of Spotify’s total revenue. Revenue from this division increased 14.04% year on year to € 2379 million from Q1 2022.

About Company

Spotify is a music streaming service. Spotify, the well-known music streaming service, provides users with access to a massive library of songs, podcasts, and other audio files. Spotify, one of the world’s most popular music services, now has over 527 million active customers worldwide. The platform is offered in both free and premium versions, with the paid version containing added features such as ad-free listening, access to high-quality audio, and offline listening.

One of Spotify’s most significant advantages is the ability to receive personalized music recommendations. Using cutting-edge algorithms and user data, the website recommends new music and artists based on the user’s listening preferences and history. Users may also utilize Spotify’s social features to follow their favorite artists, create and share playlists with friends, and discover new music through curated playlists and radio stations.

Spotify has risen in popularity as a podcast listening service in recent years, owing to its large variety of original and limited material. The platform is an excellent choice for music and podcast enthusiasts because of its user-friendly design and seamless integration with other hardware and software.

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