Back in April, Spotify’s gross profit exceeded €1 billion for the first time in its history. And, with approximately 10 million new subscribers joining in the first half of 2024, profits are set to soar.
According to Music Business Worldwide, Spotify drew in three million new subscribers in the first quarter of the year. Another seven million users went on to subscribe in quarter two.
The news of Spotify’s influx of subscribers also coincides with the streaming service’s price hike last month. The company announced all subscription tiers are set to raise by $1.
While the price shift is a seemingly minor, it will result in a huge wave of profit for the company. The 10 million new subscribers alone will see Spotify raking in an extra $10 million more every month. And that’s ontop of the extra dollar 230+ million pre-existing subscribers will be paying too.
Spotify’s growth is a marker of how music consumption has pivoted in recent years. Nowadays, streaming is the standard way to listen to music – it’s a shame artists don’t earn more from it. Ditto reports that an artist receives $0.003 – $0.005 per stream on average, with 30 per cent of those royalties going to Spotify.
Reports also showed that China’s Tencent Music Entertainment (TME) also gained over 10 million new paying users since December 2023. Of course, unlike Spotify, the number is spread across the company’s different services (QQ Music, Kugou, Kuwo and the WeSing karaoke app).
“With over 10 million net subscriber additions in the first half of 2024 and ARPPU expansion, we continue to break new grounds within China’s streaming landscape,” Cussion Pang, Executive Chairman of TME, commented on the growth [via MusicBusinessWorldwide].
“We remain optimistic about the music industry’s long-term potential and are committed to sustainably achieving our mid- to long-term goals, at a healthy pace and with the right balance,” he concludes.
As for Spotify, the green streaming giant is only set to keep growing. Spotify recently announced that they’re going to be introducing an even more expensive ‘Supremium’ tier, with high-fidelity audio.
