Spotify, the game-changer in the music industry, transformed how we listen to music, offering instant access to millions of songs. However, while it's a hit among music enthusiasts worldwide, some artists disagree about the streaming landscape.
With Spotify's inception in Sweden in 2008 and its subsequent expansion to the United States three years later, it took a decade for the platform to achieve 100 million active users. But how much has the landscape changed in 2023?
In our article, we dive into the latest Spotify statistics and explore how this platform continues to shape today's music industry.
Spotify operates with a limited free tier supported by ads and a premium paid version.
In the United States, Spotify's premium subscription costs $9.99 monthly, while the family plan lets six people use it for $15.99 monthly.
Although Spotify has rejected to join Apple Music and Amazon Music in raising its subscription price, the company is trying to get more people to use the premium version by developing features like HiFi, which makes the music sound even better, like a CD.
Here are the numbers for the music streaming platform in 2023:
1. Spotify has 551 million monthly active users
In June 2023, Spotify reported 551 million monthly active users, increasing 17% from the same period in 2022.
The platform also grew subscribers, as revealed in their latest earnings report.
2. Spotify has around 220 million paid subscribers
Spotify is known for having the most paid subscribers among music streaming services. Its paid subscribers in 2023 are around 220 million, which is 15% more than the previous year.
Regarding monthly active users, Spotify's 551 million users are less than YouTube's over two billion in 2020. However, it's essential to remember that YouTube is mainly a platform for user-generated videos, including music content.
The U.S. has the most Spotify buyers, with 44.4 million paying subscribers.
3. The Weeknd is the artist with the highest monthly listeners in 2023, reaching 110 million
The Weeknd takes the crown as the artist with the highest monthly listeners on Spotify, boasting 110 million.
Until July 2023, he held the record for the most-played song on the platform with 'Blinding Lights,' which racked up 3.77 billion plays.
Following closely behind, the second most-played artist on Spotify is Taylor Swift, with 100 million monthly listeners.
4. With a 33% share, Spotify is the preferred choice among US podcast consumers
While Apple Podcasts reign supreme with 71% of podcast downloads in the US, Spotify emerged as the preferred podcast platform for American listeners as of January 2023.
This insight comes from the latest data from the 2023 Podcast Movement Evolutions conference in Las Vegas last March.
The data, collected from 2 billion global downloads, sheds light on the preferences of US podcast enthusiasts, showing how Spotify claims the top spot with 33% of US podcast listeners, up 21% since September 2021.
5. The Joe Rogan Experience is Spotify's most listened podcast, with 11 million listeners per episode
The Joe Rogan Experience topped Spotify's podcast charts in June 2023, reaching around 11 million listeners per episode, as reported by Edison Research.
The second-place podcast, 'Crime Junkie,' lags significantly behind with an estimated 5.9 million listeners per episode, according to Rephonic.
Spotify Business Statistics
In recent years, Spotify expanded its podcast catalog from around 200,000 shows to over 5 million by early 2019.
This boom led Spotify, initially known for music streaming, to make substantial acquisitions, including content publishers such as Gimlet for $230 million in 2019 or The Ringer for approximately $200 million in 2020.
However, the enthusiasm for podcasting has cooled since then, with companies scaling back on podcast-related jobs and budgets.
Now, Spotify is preparing to introduce a more expensive subscription option later this year, featuring high-fidelity audio, as it seeks to diversify its subscription offerings and bolster its revenue streams.
6. Spotify's average revenue per user currently sits around $4.72
In 2023's Q2, Spotify reported an average revenue per user of approximately $4.72. This figure marks a 6% decline compared to the previous year and a slight decrease from the last quarter's $4.79.
To address this decline, Spotify has decided to raise its prices in the U.S. and several other global markets, following other music streaming platforms like Apple Music, Amazon Music, Tidal, and YouTube Music Premium.
7. Spotify reported a net loss of about $333 million in 2023's Q2
In Q2 of 2023, Spotify reported a net loss of about $333 million, compared to approximately $138.5 million in the same quarter the previous year.
That is partially unexpected since Spotify has focused more on growing its user base than making quarterly profits. However, the company is actively working to reduce these losses moving forward.
According to Bloomberg, Spotify might introduce lossless streaming as part of a pricier subscription tier called "Supremium," which could launch in international markets later this year.
In 2022, some users received a survey suggesting a new streaming tier called "Platinum" priced at $19.99 monthly, including HiFi quality audio and other extras.
8. Spotify laid off 6% of its global workforce in 2023
In 2023, Spotify made some big moves to work more efficiently and save money.
As part of this plan, Spotify reduced its workforce by letting go of about 600 employees worldwide, about 6% of its total staff.
According to The Verge, the layoffs began in January and continued with additional cuts later, including discontinuing services like Spotify Live and Heardle.
9. Over 70% of Spotify's music streaming service revenue goes to record labels
According to Bloomberg, Spotify's music streaming service revenue faces a challenge, with over 70% of its earnings directed towards record labels in 2023.
The company ventured into podcasting to address that, seeking a more profitable avenue to complement its core music-streaming business.
10. Only 14% of podcasts currently earn Spotify any income
Spotify struggles to make money from its podcasts, as only 14% are profitable. Despite starting with a strategy focused on famous people and celebrity-driven shows, the results could have been more consistent.
While some shows like Batman Unburied and 'Case 63' have done well, others have struggled to gain an audience.
In response to these difficulties, Spotify is shifting its focus towards making money from advertising.
Summary: Spotify Statistics
- Spotify has 551 million monthly active users.
- Spotify has around 220 million paid subscribers.
- The Weeknd is the artist with the highest monthly listeners in 2023, reaching 110 million.
- With a 33% share, Spotify is the preferred choice among US podcast consumers.
- The Joe Rogan Experience is Spotify's most listened podcast, with 11 million listeners per episode.
- Spotify's average revenue per user currently sits around $4.72.
- Spotify reported a net loss of about $333 million in 2023's Q2.
- Spotify laid off 6% of its global workforce in 2023.
- Over 70% of Spotify's music streaming service revenue goes to record labels.
- Only 14% of podcasts currently earn Spotify any income.
Spotify is a top music-stream player, ahead of rivals like Apple and Amazon. However, the company has recently cut jobs, especially in its podcast division, because of the uncertainty and competence.
Even though Spotify is trying new things like audiobooks to diversify its revenues in addition to the music streaming business and to keep up with changes, like the changing economy, it's still a challenge for the company to make money and stay ahead in the audio-streaming market.
- Spotify Files to Go Public on the New York Stock Exchange
- Spotify had 44.4m US subscribers in February, Apple Music had 32.6m, according to new data
- Spotify plans more expensive subscription tier - Bloomberg News | Reuters
- Spotify now has 220 million paying subscribers - The Verge
- Here are the 20 artists with the most monthly listeners on Spotify
- Spotify is the most popular podcast app in the US - but Apple users listen more
- Top Podcasts 2023: Joe Rogan Tops Crime Junkie And The Daily
- Spotify Podcast Layoffs Will Affect Gimlet and Parcast Workers - The New York Times
- Spotify Will Reportedly Launch Pricier Subscription Tier Later This Year
- Spotify Plans New Premium Tier, Expected to Include HiFi Audio - Bloomberg
- An Update on January 2023 Organizational Changes — Spotify
- Spotify’s Joe Rogan-Powered Podcast Bet Hasn’t Paid Off - Bloomberg
- How Spotify’s podcast plan went off the rails - The Verge