Spotify Statistics 2023: User Demographics, Growth Rate, and Revenue Breakdown

The Swedish audio streaming service Spotify has grown exponentially within the final 17 years because it was based in 2006. From its full 2008 launch, the platform has been a trailblazer within the audio content material streaming market, and a take a look at the statistics reveals that it’s not planning to decelerate any time quickly.

Do you need to be taught extra about Spotify and its impression, and the tendencies that it’s driving?

These Spotify statistics provide a window for companies and music lovers alike to be taught extra concerning the service and what’s occurring inside it. Let’s take a more in-depth look!

Importance of Spotify Statistics for Artists and Listeners

Spotify listening stats can present artists and listeners with many helpful insights. For instance, Spotify statistics for artists give them an perception into who their listeners are, the place they’re, and what they like. Based on this information, they’ll plan their industrial actions, like excursions and album releases.

For Spotify listeners, Spotify stats assist curate their suggestions and subsequent playlists as they work to enhance the AI and ML behind Spotify’s algorithms.

Spotify User Statistics

First, let’s check out the consumer stats for Spotify!

Like this infographic? Feel free to apply it to your web site or weblog, however please bear in mind to provide us credit score by linking again to https://techreport.com/statistics/spotify/ in your submit.

Number of Active Users on Spotify

In This autumn of 2022, Spotify reported a rise of over 80 million month-to-month energetic customers in only one 12 months! This introduced the general variety of free (ad-supported) and paid month-to-month customers to 489 million. And it’s estimated that as of Q1 of 2023, the service has over 517 million energetic customers.

Demographic Breakdown of Spotify Users

Spotify has extra male than feminine customers – round 58% of its viewers is males. Interestingly, 75% of each genders within the US in 2022 thought of Spotify’s premium service an important supply of leisure.

The largest age group of Spotify customers (31.51%) is 18-24, though 25-34-year-olds aren’t far behind (31.41%). So, millenials and Generation Z account for over 62% of Spotify’s total consumer base. 

One different factor to notice is that just about 30% of American Gen Z girls spend 30 hours per week streaming music on Spotify. Men of that age are likely to spend barely much less time on Spotify – 24% of them stated to spend 24 hours streaming music on the app weekly.

Spotify stats on podcasts for Q1-2 of 2022 inform us that youngsters underneath 17 have been the fastest-growing viewers for Spotify podcasts, having found 11% extra podcast content material in comparison with the earlier 12 months.

Growth Rate of Spotify Users

In Q1 of 2015, Spotify had 68 million energetic month-to-month customers. By This autumn of 2019, the numbers grew by 203 million to succeed in 271 million. And through the Covid-19 pandemic (Q1 of 2020-Q2 of 2021), Spotify subscribers grew from 271 million to 365 million, signifying a staggering development charge of 94 million customers (free and paid), or 34.6% in simply 18 months!

For the free subscribers, Spotify noticed an enhance of 59 million and 23% YoY development from This autumn of 2021to This autumn of 2022. 

And when it comes to premium subscribers, Spotify had 205 million of them as of This autumn 2022. To examine, in Q1 of 2021, it had 158 million premium subscribers, signifying a 46 million and 13.9% YoY development!

Geographic Distribution of Spotify Users

Like this infographic? Feel free to apply it to your web site or weblog, however please bear in mind to provide us credit score by linking again to https://techreport.com/statistics/spotify/ in your submit.

Spotify is on the market in most European nations, the Americas, APAC, and Africa. But some options are solely obtainable to particular markets. For instance, the audio e book choice was solely obtainable to the US till November 2022, when Spotify expanded audiobook characteristic to different markets.

As of 2023, Spotify is on the market in 184 markets worldwide. Most paying Spotify subscribers are in Europe and North America. In Q3 of 2022, each areas accounted for67% of whole paying subscribers. 

As of This autumn of 2022, the EU alone represented 39% of all Spotify premium customers and 30% of free customers, making it Spotify’s largest market. North America’s share of Spotify premium customers was 28%, and LATAM accounted for 21%.

The US is estimated to have 97.5 million free and paid Spotify customers in 2023. Slightly over half of them (49.5 million) are estimated to be paid customers.

Spotify Revenue Statistics

Now let’s check out Spotify’s financials during the last couple of years!

Spotify Revenue Breakdown

Here is a breakdown of Spotify’s income in 2021 and 2022:

2022 was the primary time Spotify remodeled €10 billion! 

However, Spotifyoperated at a loss in 2022, reporting a lack of €695 million in 2022. This determine continues the pattern of Spotify working at a losssince 2009. 

Spotify’s common income per premium consumer was€4.52 in 2022.

These income figures are the very best reported thus far for each segments. They spotlight how far Spotify has come since 2012 when it had made €374 million from premium subscribers and $55.5 million from ad-supported ones.

Revenue Growth Rate of Spotify

As we talked about earlier, Spotify’s income has grown considerably within the final 5 years. Although the income of Q1 of 2022 suffered a small dip in comparison with This autumn of 2021, the whole 12 months noticed the corporate’s income develop from €2.66 billion in Q1 to €3.16 billion in This autumn. But in Q1 of 2023, the corporate’s income dipped once more, reaching solely €3.04 billion.

Comparison of Spotify Revenue with Other Music Streaming Services

Let’s now examine Spotify’s income with different music streaming gamers. Spoiler alert – there’s a winner!

Spotify vs. Apple Music

As of 2022, Apple Music had 84.7 million paid subscribers, to Spotify’s 205 million. Apple Music’s income that 12 months was $8.3 billion, or €7.5 billion, in comparison with Spotify’s €11.73 billion.

Spotify vs. YouTube Music

In Q3 of 2021-Q2 of 2022, YouTube Music generated $6 billion income. In comparability, Spotify earned over €10 billion within the specified interval.

Spotify Statistics for the Music Industry

Trends in Music Consumption

General Trends

Streaming and personalisation are arguably the most important tendencies in music consumption that aren’t going anyplace any time quickly. Music streaming now accounts for over 60% of the music business’s income. And personalised playlists have grow to be more and more fashionable on Spotify. These playlists use ML and AI to curate music suggestions based mostly on the consumer’s historical past and preferences.

Podcasts

We talked about Spotify podcasts earlier and how fashionable they’ve grow to be amongst Spotify’s youthful viewers. Indeed, along with music consumption, Spotify is now a preferred instrument for spoken-word content material like podcasts and audiobooks. 

As of 2022, Spotify had 32.5 million month-to-month podcast listeners. And it may be surmised that Spotify is driving the pattern of podcasts as additional options of audio platforms, provided that Apple Music additionally had over 25 million month-to-month podcast listeners in 2022.

Emerging Genres

The reputation of newly rising genres, akin to lo-fi hip-hop and Okay-pop, is one other pattern price taking a look at. Spotify was the second-most fashionable app for accessing Okay-pop music content material in 2022, after YouTube. 

An enormous cause for rising genres’ rising reputation is the accessibility of music via streaming companies like Spotify. The companies permit artists to experiment with combining completely different music types, resulting in the rise of latest music genres.

Digital Rights Management and Artists’ Compensation

With piracy on the rise, Digital Rights Management (DRM) is a vital pattern to concentrate to, because it helps defend artists’ rights. Spotify makes use of DRM to forestall unauthorized entry and be sure that its content material isn’t illegally distributed or downloaded. This know-how additionally helps stop piracy and ensures that artists are pretty compensated for his or her work. 

Insights into Listener Behavior

Devices

Firstly, we’d like to spotlight the recognition of sensible audio system utilized by Spotify customers to stream music. For instance, 86% of sensible speaker homeowners within the UK use them to take heed to Spotify or different audio platforms. 

However, cell phones stay  the preferred medium for streaming music. 74% of the UK customers used them to take heed to audio content material, as of 2022

Social media has additionally been an affect on Spotify. Sharing is a vital side of listening to music on Spotify. Its built-in social sharing options permit customers to share their favorite audio content material on social media. This led to the rise of social media influencers within the music business introducing new music to their followers and supporting artists’ earnings.

In addition,  Spotify rolled out TikTok-style feeds for locating music, capitalizing on the recognition of brief movies on social media on apps like Instagram and TikTookay, in March 2023.

Top Artists and Songs

Spotify prime artists in 2022 by variety of followers have been:

• Ed Sheeran
• Ariana Grande
• Billie Eilish

However, solely Ed Sheeran was within the prime 5 artists with probably the most month-to-month listeners, with The Weeknd taking the lead, with over 98 million month-to-month listeners.

The most performed track on Spotify in 2022 was Harry Styles’ “As It Was.” Ed Sheeran’s monitor “Shivers” took the seventeenth spot and The Weeknd’s “Blinding Lights” was twenty seventh. 

The Future of Spotify

Like many different digital gamers, Spotify suffered a wave of layoffs in 2023, together with its head of podcasts. And regardless of being a trendsetter within the audio streaming area, it’s working at a loss. So, how can a digital firm working at a loss have a sustainable future?

Spotify’s previous couple of methods, akin to investing in podcasts, price the corporate some huge cash. But it’s an agile and progressive firm that’s adaptable to the altering circumstances and consumer habits, and it’s efficiently leveraging AI and ML. 

Spotify goals to have a billion customers by 2027. It’ll should maintain the YoY development charge of 19% to realize that. This might show difficult, not least as a result of firm’s departure from the Russian market, which led to Spotify dropping 1.5 million paid subscribers. And to maintain its development in the long run and repay its shareholders, the corporate will ultimately should grow to be worthwhile.

What’s Next for Spotify?

Unless you’re the kind of one who loves vinyl data and CDs, chances are high that you just’ve streamed music on-line a minimum of as soon as. Spotify has a attain of over 450 million free and paid customers worldwide, and the subscriber numbers are rising every quarter. Europe is the most important marketplace for the Swedish audio streaming large. 

Spotify has been increasing into different audio content material apart from music, akin to podcasts and audio books. And the consumer stats for Spotify inform us that its improvements have been welcomed by the customers, which signifies that the streaming section of the music business will likely be rising much more within the foreseeable future. But for Spotify to achieve the long run, it’ll have to regulate its technique to grow to be worthwhile, lest it loses its buyers.