Spotify now has 236 million Premium subscribers, a 4 percent compared to last quarter, while the total number of monthly active users increased by 5 percent to 602 million. The announcement comes as part of the release of fourth quarter results, which cover the three months ending December 31. Over the course of 2023, Spotify's user base and premium subscribers grew by 113 and 31 million, respectively, setting records for the company.
The results cap a year marked by cost cuts and price increases for the world's largest audio streaming service. Last December, the company announced it would lay off 17% of its workforce, or more than 1,500 people, in what was its third major round of layoffs in 2023. Spotify also raised its prices in the states -US and other markets around the world earlier this month. year, which notably saw the monthly cost of a Premium subscription increase to $10.99 after more than a decade at $9.99.
Despite the drive for efficiency, Spotify reported a quarterly loss of 70 million euros (about $75 million), down from a profit of 65 million euros ($70 million) in the third quarter. But it's an improvement from the 270 million euro (about $290 million) loss recorded in the same quarter a year ago. Its net loss amounted to 532 million euros (around $570 million) for the whole of 2023. But the average revenue per user is increasing and now stands at 4.60 euros, compared to 4.34 euros last quarter and 4.55 euros in the same quarter a year earlier. Advertising revenue also increased to 501 million euros (about $538 million) in the quarter, which the Wall Street Journal Remarks is an absolute record.
Beyond music, Apple's podcasting and audiobook initiatives continue, although the company has adjusted its approaches in recent months. He recently renewed his deal with Joe Rogan, but said he would now allow his podcast to be distributed through other podcasting platforms. And on the audiobook side, the streaming service now allows Premium subscribers to access 15 hours of audiobook content as part of their subscription, after previously selling it exclusively as an on-demand supplement.
Today's release once again omits any mention of when Spotify's lossless streaming option might launch. The company announced this feature, which at the time was called “HiFi”, almost three years ago in February 2021, but it has yet to announce an official launch date. As of last March, it was still available “at some point” and more recent reports suggest it might now be called “Supremium,” but it's unclear exactly when it might be publicly available.