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State of the Screens

Spotify Goes Big On New Users & New Content

By December 3, 2020No Comments

Spotify paid subscribers (YoY growth):
1) 2017-Q3 – 62M
2) 2018-Q3 – 87M (↑ 40%)
3) 2019-Q3 – 113M (↑ 30%)
4) 2020-Q3 – 144M (↑ 27%)

Spotify ad-supported users (YoY growth):
1) 2017-Q3 – 91M
2) 2018-Q3 – 109M (↑ 20%)
3) 2019-Q3 – 141M (↑ 29%)
4) 2020-Q3 – 185M (↑ 31%)

Spotify share of total revenue from advertising:
1) 2017-Q3 – 11%
2) 2018-Q3 – 11%
3) 2019-Q3 – 10%
4) 2020-Q3 – 9%

Interesting: The average length of a song has continued to fall in recent years.

Why this matters: Spotify pays an artist on a per-stream basis once a track is played for 30+ seconds.  This incentivizes artists to create shorter songs since a 2.5-minute song played twice is twice as valuable as a 5.0-minute song played once.

More: Inside YouTube’s plan to win the music-streaming wars

Michael Beach

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.

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