$Alchemy_Keywords

$Alchemy_Keywords

Spotify Reaches 144 Million Subscribers but Misses on Revenue

Spotify Reaches 144 Million Subscribers but Misses on Revenue

10/29/2020 4:29:00 PM

Spotify Reaches 144 Million Subscribers but Misses on Revenue

Spotify continued to grow subscribers and content in the third quarter of 2020 but came up short on sales and earnings, driving its stock down in early trading on Thursday. CEO and cofounder Daniel…

CEO and cofounderDaniel Ekalso hinted at a price increase during the call, but cited the ongoing global pandemic as a reason why that might not happen in the immediate future.The streaming giant lost the equivalent of 68 cents a share on sales of $2.31 billion in the most recent quarter. Analysts expected it to lose 61 cents a share on sales of $2.36 billion; in the same quarter last year, its Spotify earnings were 40 cents a share on sales of $1.93 billion.

YouTube suspends OANN for violating its Covid-19 policy Opinion | Here's why we just filed an ethics complaint against Sen. Lindsey Graham Elton John Teams Up With TikTok For Special World AIDS Day Campaign

However, it reported a gain of 6 million subscribers, from 138 million in the second quarter and 130 million in the first, and 320 million total monthly active users, up 29% year over year. Ek pointed out that its advertising revenue came in better than expected, returning to growth after a significant dip in the second quarter. The company also launched in Russia and 12 surrounding territories.

According to its guidance, Spotify expects to lose $84 million on sales of $2.46 billion in the fourth quarter.Ek mentioned the possible price increase while discussing growth potential. “If engagement and/or our listener value per hour is high, it gives us the ability to selectively increase our price. Here’s how I think about it. While our primary focus remains user growth, based on our maturity in certain markets and the increasing value we provide to our subscribers — including enhanced content — we’ve seen engagement and more specifically value per hour grow substantially over the past few years,” he said.

“initial results indicate that in markets where we’ve tested increased prices, our users believe that Spotify remains an exceptional value and they have shown a willingness to pay more for our service. So as a result, you will see us further expand price increases, especially in places where we’re well-positioned against the competition and our value per hour is high.”

He noted, “I would, however, throw in one big caveat, we will continue to tread carefully in these COVID times to ensure we don’t get ahead of the market.Ek pointed to the company’s areas of growth during the report, saying that it has paid out more than €1 billion to rights holders in every quarter in 2020, “and I’m proud to say that we’re on track to pay out another €1 billion-plus in Q4.”

He also said that podcasts increased over 20% and music releases are up 13% over the prior quarter. “We saw a strong positive reaction when Michelle Obama’s and Joe Rogan’s podcasts launched during the quarter, and we’re seeing great success with our Originals and Exclusives, which now account for 19% of all podcast listening on the platform.

“The size of our total catalog increased significantly, and our advertising business returned to growth,” he continued. “We also beat expectations in our newest markets where we are seeing growth continue to accelerate. This affirms our belief that there is significant pent up demand for Spotify around the world — even in places where our service has yet to launch. These results illustrate the power of our business despite COVID and other related challenges across the globe.”

Warner Music Group Is Bending, Not Breaking: Analysis 9 Things We Learned From Tekashi 6ix9ine's 'Saga of Danny Hernandez' Documentary Trump grants Biden access to presidential intel

He repeatedly used a flywheel (a heavy wheel for opposing and moderating by its inertia any fluctuation of speed in the machinery with which it revolves, per Merriam Webster) as a metaphor. “We know that when we reach more listeners, we’re able to attract more creators to our platform. So with more reach, comes more content and with more content, especially content unique to Spotify, there comes more opportunities to monetize. That interplay is super important because it is the foundation of our flywheel. And that flywheel is continuing to accelerate faster with every new user and creator that comes on our platform.

Read more: Variety »

Bernie Sanders says he would accept Labor secretary job if Joe Biden asks

Vermont Sen. Bernie Sanders said Wednesday that he would accept the job of Labor secretary if President-elect Joe Biden asked him to join his Cabinet.

Spotify Hits 144M Paid Subs, Ad Revenue and Consumption Recover After Pandemic SlumpMusic streamer Spotify ended September with 144 million paid subscribers and 320 million total active monthly users. Ad revenue returned to growth, and 'global consumption hours surpassed pre-COVID levels' – 'all regions have fully recovered.' Details: And they're still are so desperate they give joerogan a platform to spread Alex Jones conspiracy lies. Yet another reason to not use Spotify.

Auditor slams California for Exide cleanup delays, says cost could reach $650 millionAuditor slams California regulators for Exide cleanup delays, says cost could top $650 million Raise taxes. And again And again

LA Dodgers CEO says it will take the franchise 'years to catch up' from lost 2020 revenuesThe Los Angeles Dodgers experienced more than $100 million in lost revenues due to the pandemic-altered MLB season, President and CEO Stan Kasten told CNBC. Lol and no one feels sorry for these damn millionaires Loss revenue due to all of the BLM protest they were doing No one likes or attends baseball games except for a few.

Byron Allen's Allen Media Group Buys Two MGM TV NetworksThe media mogul's growing film and TV portfolio now includes the over-the-air broadcasters This TV and Light TV reaching 81 million households.

Whitney Houston Becomes First Black Artist to Earn Third Diamond-Certified AlbumThe RIAA and Legacy Recordings announced Wednesday that Houston's 1987 sophomore album, 'Whitney,' has reached diamond status, which is equivalent to selling 10 million copies. Awesome!! Once this Covid all blows over she should have a huge party to celebrate And which company benefits from this? She’s has the ultimate voice. So sad about her personal struggles but her beautiful voice lives on.

Spotify Reportedly Won’t Take Action After Podcaster Joe Rogan Interviewed Far-Right Conspiracy Theorist Alex JonesSpotify removed Jones’ podcast from the platform in 2018. Why would they, freedom of speech exists in America I’d pull my music off Spotify, but it’s not like they pay artists anyway. Alex Jones Far right