Streaming service Spotify announced today that the service now has more than 600 million monthly active users. The company said in its fourth-quarter 2023 earnings report that it added 28 million users during the quarter, marking the second-largest quarterly gain in the company's history.
The Sweden-based company noted that in addition to having 602 million users, the service has more than 236 million paying users, representing 15% year-over-year growth. Last year, Spotify raised prices for its premium subscription in the United States for the first time, from $9.99 per month to $10.99 per month.
The company said subscriber growth was led by the rest of the world and Latin America, which account for 35% of total paying users.
Additionally, Spotify said its year-end Spotify Wrapped campaign, which gives users an overview of what they consumed on the platform, attracted more than 225 million users.
In November, the company announced that premium users in the United States would get 15 hours of listening time per month across 200,000 titles. It also partnered with TikTok to allow users to record a song into a music video directly on the Spotify app.
The company had a turnover of 3.7 billion euros ($3.97 billion), with growth of 16% year-on-year. It recorded an operating loss of 75 million euros, which was better than last year's loss of 231 million euros for the same period. However, Spotify made €32 million in profits in the third quarter of 2023. The company's advertising revenue reached a record high of €501 million, growing 12% year-on-year.
In December, the company cut 17% of its workforce, or about 1,500 people, to become more “productive and efficient.”
Last month, Spotify presented mockups showing how EU-based users could purchase subscriptions and add-ons such as audiobooks on iPhone once the Digital Markets Act (DMA) comes into force. A few days later, Apple released its guidelines for changes to the App Store to comply with the new rules, including new “base technology fees” for more than 1 million annual downloads. In response, Spotify called Apple's changes “extortion” and a “complete and utter farce.”