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Spotify had 220 million Premium subscribers and 551 million monthly active users as of June 30, the company announced today in its latest earnings report. That’s an increase of 27 and 17 percent respectively compared to the same period last year and above the guidance released last quarter.
But as the number of listeners increased, Spotify reports that it generates less revenue from each of them on average. In today’s release, Spotify says average revenue per user is currently €4.27 (approximately $4.72), down 6 percent year-over-year and down slightly from €4.32 (approximately $4.79) last quarter.
Today’s second quarter earnings report comes less than 24 hours after Spotify announced it would raise its prices in the US and several other markets worldwide, mirroring similar price increases seen with other music streaming apps such as Apple Music, Amazon Music, Tidal and YouTube Music Premium. Spotify’s price increases are clearly intended to reverse declining revenue per user, though the impact won’t be visible until next quarter.
The company posted a net loss of €302 million (approximately $333 million) this quarter, compared to a loss of €125 million (approximately $138.5 million) in the same quarter last year. That’s hardly surprising for a company that generally prioritizes growth over quarterly profits, but the company is clearly working to reduce these losses going forward.
Spotify’s initial release has no mention of the long-delayed HiFi streaming option. The company announced the product more than two years ago, saying it would bring CD-quality lossless streams to the service. Recently, Bloomberg reported that lossless streaming may be included as part of a higher-end subscription tier codenamed “Supremium,” which could initially launch in non-US markets later this year. A survey sent to at least one user last year suggested the company was considering charging $19.99 per month for a new streaming tier called “Platinum,” which would include HiFi and other features.
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