30-07-2025
Spotify sees 12% rise in paid subscribers
Spotify blamed the shortfall on increased spending on salaries, changes in its revenue mix and higher-than-expected social charges. — AFP
STOCKHOLM: Spotify saw paying subscribers rise 12% to 276 million customers in the second quarter of 2025, the world's top music streaming service said on Tuesday, though profits fell below expectations.
"People come to Spotify and they stay on Spotify. By constantly evolving, we create more and more value for the almost 700 million people using our platform," said Daniel Ek, the Swedish company's founder and CEO.
The Swedish company saw a greater-than-predicted 11% year-on-year increase in its totally monthly active users to 696 million.
Yet operating profit reached €406mil (US$468mil/RM2bil) – up 52.6%, but well short of its 539 million euro forecast.
Spotify blamed the shortfall on increased spending on salaries, changes in its revenue mix and higher-than-expected social charges.
"Social Charges were EUR98mil above forecast due to share price appreciation during the quarter," the streamer explained in its financial results presentation.
Total revenue rose by 10.1% to €4.19bil (RM20.6bil).
The below-expectation profit announcement comes as the streamer has found itself at the centre of the debate over music generated by artificial intelligence.
The technology's rise has led artists to complain about the prospect of being drowned out by a flood of AI-composed songs.
Of the major streaming platforms, only Deezer alerts listeners if a track is entirely conceived thanks to AI, despite the swift explosion in the number of AI-generated songs.
When questioned by AFP in late May, Ek insisted that AI did not present a threat to the music industry, and would instead help develop creativity. – AFP
