However, his loss in the period was 79 cents per share. After a brief increase, stocks fell by up to 2% to US $135,50 in new York.
Spotify reached the 100 million subscribers premium, something unpublished for any online music service, after incorporating more customers in the last quarter of last year than anticipated analysts, thus growing the confidence that the company has A lot of room for growth.
The service added 4 million of additional customers in the lapse, compared to the 3.3 million forecasted by analysts. However, their loss in the period was 79 cents per share, over the 41 cents in advance. After a brief increase, stocks fell by as much as 2 percent to US $135,50 in new York.
The competition from Apple, Amazon and YouTube has done little to curb the growth of Spotify worldwide and the company has relied on its independence from some of the world’s largest companies to gain its advantage. It has increased its customer base through promotional agreements with Hulu, Samsung and even Google, YouTube matrix.
“The music industry market is much bigger than most people believed,” commented the company’s executive director, Daniel Ek, in a teleconference with analysts.
The forecast company will incorporate between 7 million and 10 million subscribers in the current quarter. While Spotify has accumulated its current user base thanks to music, the company has acquired three podcasting companies in recent months to generate an increase in subscribers through other media.
Spotify invested about $400 million to buy Gimlet Media, Anchor and Parcast, hoping that podcasting will make the company the best audio platform in the world and reduce its dependence on music. Record labels are left with most of their annual sales.
While Spotify’s premium subscribers exceeded expectations, monthly active users were short on totaling 217 million. It was projected that Spotify would report around 218.3 million of total users and 99.3 million of premium subscribers, according to estimates collected by Bloomberg News.
The expansion to new territories like India will keep the increase of free users over the next few years, the company said. Spotify has added 2 million customers since it expanded to India earlier this year and McCarthy claimed that in Latin America and Asia is growing rapidly. The platform offers a free service with advertisements and limited use and another without ads for a monthly cost.
Its growth in recent years has driven the entire music industry. Album sales have gone up four years in a row and surpassed US $19,000 million in 2018. The actions of the music streaming service have risen by 22 percent so far this year.