DIGITAL Spotify Hits 140 Million Monthly Active Users After Adding 40 Million in Just One Year

140-mil-users-spotify-CONTENT-2017-840x460Spotify announced today that it has 140 million monthly active users, up from 100 million a year ago.

The music service declined to say how many of the 140 million are on commercial-free subscription plans and how many listen for free with ads. In March, Spotify—which continues to compete in the on-demand listening space with Apple Music, Pandora and others—announced it had 50 million paying users.

“The acceleration of audience growth is allowing us to continue to grow the ads business at a 50 percent year-over-year clip,” said Brian Benedik, vp and global head of sales at Spotify. “Six, seven years into the advertising journey at Spotify, we’re proud of that. It’s tough to do when you get deeper into the journey, but what we’re learning is this idea of understanding people from music.”

Benedik said Spotify’s ad offerings fall into three buckets: audio, video, and sponsored playlists and branded moments.

Video in particular is growing, and Spotify is adding nonmusic content like original series and podcasts to its library. The company is currently testing a discovery feature within the popular Rap Caviar” hip-hop playlist. After a few songs, videos (including episodes of All Def Digital’s Traffic Jams) pop up on the screen. Benedik described the feature as a “test” and also said the company is testing pop-ups promoting Spotify’s original podcasts.

“How can artists—in the case of Rap Caviar—express themselves in different ways?” Benedik said. “Certainly music and audio is one thing, but video and visual expression is something that we’re testing with and that users are interested in.”

At Cannes next week, Spotify is setting up an experience targeted at creatives to show them the ins and outs of the platform. Data is a big part of its pitch. First-party data collected from user IDs like age and gender as well as proprietary data on listening habits underpins Spotify’s ad business for brands including Heineken, McDonald’s and Procter & Gamble, Benedik said.

“We can share very intelligently and clearly: ‘Here’s what’s happening on Spotify,’” Benedik said. “More importantly, we can tell some of these brands how their audiences are behaving on Spotify. It sets the stage for a much different conversation than we’ve ever been able to have before.”

Infographic: 72% of Spotify Listeners Are Millennials. Here’s How They Use the Service

Music streaming services are more popular than ever, and, naturally, no group is leading the charge more than millennials. One of the most popular of those services is Spotify, which provided Adweek with exclusive data to get a better look at this demo. “As the largest global streaming service, we have a deep understanding of millennials from our data on streaming habits,” said Spotify business marketing global director Jeff Rossi. “For marketers looking to reach this highly sought-after group, we understand that millennials are listening more frequently and streaming in more places than nonmillennials, including most often on mobile and desktop as they move from home to school to work. We also see that millennials’ streaming habits are not as impacted by traditional peak consumption periods like prime time or drive time. They are connected all day from the moment they wake up.” pitch-perfect-data-02.png

The Strengths And Weaknesses Of Apple Music

Spotify killer? Or Ping 2.0? Apple today finally announced its move into on-demand music streaming with the unveiling of Apple Music. Now the question is whether Apple Music will be a hit with the public, bringing legions of new users to streaming and stealing from competitors. Or whether it will be another Apple app we stuff in a folder and forget about.

Here’s a comparison between Apple Music and its competitors, plus a deeper look at the positive and negative points from the launch (full article here):music-chart1

Spotify tripled its losses in two years. Is streaming audio in trouble?

spotify-genericThe financial data, revealed in a public document in Luxembourg and reviewed by the New York Times, comes as the company is reportedly preparing to enter the streaming video market. That move could entice more advertising money, which would help alleviate the losses. Spotify blamed the losses on costs associated with product development, expansion and licensing, the Times reported.

Spotify has long claimed that it would be able to achieve profitability once it hits a certain number of paying customers. The fact that its losses seem to grow as it brings in more money seems counter to that notion. It now has 60 million total users, 15 million of which paid for the service. Read full article here.