Spotify has released a report summarising the audio streaming giant’s business for the third quarter of this year. The company once again reported a record in the number of paid subscribers to the platform, with the podcast segment growing in strength.
The latest report summarising Spotify’s activity in the third quarter of this year shows that the service’s subscriber base continues to grow.
The streaming service has 195 million users of paid subscription plans, an increase of seven million on the previous quarter. This growth rate is expected to allow it to reach the 200 million threshold later this year.
In addition to this, there are 273 million users on Spotify’s free plan – this means that the audio streaming service is currently used by 456 million people worldwide.
Podcasts are becoming increasingly important in terms of Spotify usage. In just one quarter, 300,000 new recordings were added to the service’s library, expanding the available database to 4.7 million items. Importantly, the podcast division is still not profitable, but the company has seen double-digit growth in terms of earnings from it.
Despite this news, the market reacted negatively to the report, with shares on Wall Street shrinking by more than 6 per cent following the release of the figures. This is mainly due to the fact that the gross profit margin was 24.7 per cent, two points lower than in the same period a year ago.