![]() Spotify posted a net loss of $194m last year, despite record revenues in excess of $2bn. That doesn’t mean ratcheting this revenue-per-subscriber figure wouldn’t be in Daniel Ek’s best interests, though. Not by the looks of things: Spotify has just started running a $0.99 for three months promotion to attract new subscribers in key territories (and a $9.99 for three months promotion to lure back lapsed subscribers). Is Daniel Ek fussed about trying to push up this average spend figure in 2016? So Spotify can point to both giant growth and significantly improved premium conversion to justify a relatively small drop in revenue-per-subscriber last year. That conversion rate was 6.5% higher than that seen in December 2014, when 15m subscribers were coughing up out of a total 60m active users – equating to just 25%. ![]() It’s also important to remember that 31.5% of Spotify’s official active user base ( 89m) were paying for the service at the end of last year. Therefore, the value of an average Spotify subscription fell 4.5% from one year to the next – or $0.28 per person per month.Ĭonsidering Spotify uses a combination of telco bundles, territorially-sensitive prices and get-’em-cheap promotions to draw in new subscribers, labels may have feared a more dramatic drop.Įspecially when you consider that the total number of subscribers from 2014’s year-end to 2015’s year-end grew 87% (up from 15m to 28m). In 2014 – at current exchange rates and on the same basis – the average Spotify subscriber paid €65.24 ( $72.71) a year, or €5.44 ( $6.06) per month. ![]() On the surface of it, a $5.78 monthly subscription average may seem like a disappointment to music rights-holders – especially those used to referring to Spotify’s $9.99/£9.99/€9.99 monthly subscription price.īut when you consider other factors, it’s perhaps more positive than it first appears. This figure is a low-end approximate, based on the number of subscribers Spotify had at the end of 2015 ( 28m) and the total amount of revenue brought in from premium accounts across the year ( €1.74bn, or $1.94bn at current exchange rates.) The average Spotify subscriber in 2015 paid around €62.30 ( $69.30) a year, or €5.20 ( $5.78) a month, according to the company’s latest set of financials. ![]()
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