Talking about the music streaming industry there are many streaming apps which hit the globe. But among all of them, Spotify has seamlessly established its name among the people who love listening to music.
Spotify acts as a bridge between music and music lovers. This Sweden based media and entertainment company made its name in the world of music streaming industry. By providing Digital Music, video streaming, podcast services and millions of songs to its users across the world. It’s the service and acquisition which makes this Sweden based company rule the music streaming world.
With the expanding business statistics, Spotify has made its remark among all the other apps and makes its user more concerned about the service. Now there is nothing hidden about the statistics of Spotify. Here we are unboxing the strategies of Spotify which help it to gain more opportunities also the statistics which will help you to understand its gains more better. But before starting it let’s take a look over some facts about Spotify.
Facts About Spotify
Aim and Features of Spotify
Spotify is an on-demand music streaming industry which serves the music services to its users. It is Sweden born music streaming app founded by Daniel EK and Martin Lorentzon with the major aim to remove the content piracy and illegal distributions of recordings. They made this platform for the performers so that they can host their work and get paid for their marvellous royalties.
It’s their business model and their seamless work which takes them at the top. As they not only features the original app version but also launch the lite version for the developing countries and cosmic playlist for its user. Cosmic playlist is that playlist which lets the user select their own playlist as per their astrological sign.
The Spotify’s original version provides the user to use its services only when they log in by using their social account ID’s i.e. Facebook or the Gmail account. This makes them use their services without paying monthly subscription fees.
So, let’s dive into the statistics world of Spotify…
Company’s Growth Statistics of Spotify
1. Number of Organisation Spotify Acquired
It’s the organisation acquired fact which makes it on the top. As compared to the other music streaming apps Spotify came on the top in acquiring organisation. According to the 2019 database, Spotify has acquired 17 organizations like- Sound better, Anchor, Parcast, Gimlet media, Niland etc. On Feb 5, 2020, Spotify has acquired one more company namely The Ringer which makes its acquiring count as 18.
2. Current Valuation of Spotify
In the year 2019, Spotify made a total valuation of $29.5B. As compared to 2018’s valuation Spotify has earned 1.25% more in 2019. Behind this huge rising its constant effort and demand for the app development company who brings success towards the apps like Spotify.
3. Availability on platforms
4. Funding of Spotify
The funding process is all about gaining and raising the total amount which can help the company. Since its foundation, this music streaming app has raised $2.7B in 22 funding rounds which include multiple debt financings.
5. Competitors of Spotify
Pandora, Apple Music, Google Play Music, Amazon Prime Music etc. Among all of the mentioned competitors, Apple music has been the biggest rival with Spotify.
Playlist Statistics of Spotify
1. Number of Unplayed Songs by the Users
About 25% of songs on Spotify have never been played by the users. As Spotify offers various music streaming services segments to its users.
2. Number of most popular songs played on Spotify
The Billion times played music on Spotify are “shape of you” “Havana” etc. which is calculated as 25 songs.
3. Number of times the Personalised songs are played on Spotify
20% of the songs which are played on Spotify are personalised. As Spotify has offered its customers three segments i.e. personalised, UGC and curated music.
4. Number of songs added to Spotify every day
About more than 19,000 -20,000 songs are added to Spotify every day. Which means the greatest music experience to the users every day.
5. Number of playlist and tracks available on Spotify
About 40 billion+ playlist and 60 million+ tracks are available on Spotify. Which user can access easily. But the access totally depends upon the free and premium users subscriptions.
6. Number of podcasts available on Spotify
Around 100,000 Podcasts are available on Spotify which is the best reason to attract any user towards it. Spotify also provides video and lyrics in the songs. So, the user can easily watch, sing or listen to music at the same time.
Spotify User Statistics
1. Majority of users who have registered from their social Account as per user statistics
The majority of the users who have been registered from their social account are 55% users. This facility helps Spotify to reach the larger segment of the users. This provides a special platform to the users so that they can actively use the services provided by Spotify.
2. Premium Subscribers of Spotify
The statistics show that in the current premium subscription users of Spotify are 124M including the ad-supporting app users too. It was expecting to get the increase in premium subscription of about 128 to 127M users in the upcoming year.
The reason behind the increase in Spotify subscription is the business model which makes it more popular among the people.
3. Active Users Of Spotify
According to the year 2019 Spotify user statistics, the number of monthly users is estimated as 232M. It was estimated to reach 245M to 258M but surprisingly the result comes out as 271M in the fourth quarter.
4. Majority of Spotify users from the USA as compared to other music streaming services as per user statistics
According to the researched data, it was found that the USA has the largest Spotify market which can be a target for the future revenue generation country for Spotify. The total Spotify users from the USA are 47.7 M as the monthly users. It’s India who is not legging behind the league of using Spotify. As Spotify is used by the 2M users in India.
5. Number of Spotify users according to the Age group and gender demographics
The highest number of Spotify users base is from the millennials that are of 25%. And in the gender majority, the highest majority is of males as compared to the female users although there is not much difference in the ratio. The male ratio is 56% and on the other hand, the female ratio is 55%. It was also observed that 44% of Pandora subscribers have moved towards Spotify as per their own decision. To make the age group statistics and Gender statistics understanding better we are showing the statistics data through the chart. So, let’s take a look….
Data Usage Statistics of Spotify
1. Music listening duration
On average it was observed that Spotify is played 148 minutes a day by the users of Spotify.
2. The platform for listening to music
As Spotify is available on various platforms but the major platform where it is used is mobile and tablets. It was observed that 52% of users listen, music on their mobile and another 10% of users listen to music on tablets.
3. Music consumption by the premium subscribers
Spotify offers premium subscription to its users so that they can listen, music in premium quality. On average, the premium subscribers devour 2.4MB to 115.2MB a day. But the price for having premium features are too high as compared to other songs streaming apps. This increases the chances of the user to move towards the other services like Apple Music. To remove the high-risk Spotify offers it’s premium users the normal streaming option which is free. All they need to do is change the settings and make it to normal streaming after that they can enjoy the songs.
4. Number of artists listened by the users
Usually, the user devotes 35-42 artists a week. This increases the popularity of it also helps Spotify to target a larger section of the audience.
4. As compared to other apps it was observed that 15% of the USA audience are adults who play the songs on Spotify.
Market and Revenue Statistics of Spotify
1. Revenue Generated by Spotify annually
According to the annual report, Spotify has generated a revenue of $7.44B. It was the marginal gain from the year 2018 i.e. 31% increase in 2019. And quarterly marked as €1.85B which is up to €1.49B from the previous data.
3. Revenue generated by Spotify from subscribers and Ad-support
It was observed that Spotify has earned 4.75B from premium subscribers and from the ad-support Spotify have earned 0.57B.
4. Major target source for the revenue generation
The major earning target source for Spotify is the USA. As the highest devour of Spotify are the USA audiences as compared to other music streaming services apps. The revenue-generating statistics has shown that 76.37% of the payment has been done by the royal or the premium music subscribers.