Despite increasing premium prices, the streaming platform's premium subscribers rose to 226 million in the third quarter of 2023.
Spotify's earnings report for the third quarter of 2023, the quarter ending on September 30, revealed a 3% increase in Spotify Premium subscribers. The number has now reached 226 million. This is despite price hikes in the US and various global markets.
The platform's monthly active users (MAUs) also rose to 574 million, marking a 4% quarterly and 26% increase year-over-year. These figures exceeded the platform's predictions itself. Notably, the net growth in MAUs marked the second-largest third-quarter increase in the platform's history.
During the time period, Spotify introduced its first premium price increases in various markets. This includes a $1 rise in the standard Spotify Premium subscription to $10.99, impacting various markets and subscription plans.
Despite this, it reported a profit of approximately $69 million for this quarter, a significant improvement from the $177 million loss in the same time in the previous year. Operating income also showed a positive turn, reaching $34 million.
Spotify's focus also extends to its podcast and audiobook offerings. Premium subscribers can now access up to 15 hours of audiobook content as part of their subscription, a shift from the previous a la carte model.
Additionally, new podcast features include auto-generated transcriptions and an AI-powered voice translation feature, showcasing Spotify's ongoing investments in these platforms.