Spotify has increased its subscriber count by 12 per cent year on year to 268 million. This growth comes amid increasing competition in the digital streaming market, which continues to reshape the global music industry landscape.
The music streaming giant revealed the impressive result, which is Spotify’s highest quarter one subscriber net add since 2020, in its first quarter 2025 earnings report. Industry analysts had been closely watching these results as an indicator of broader streaming market health.
Spotify’s monthly active users are also on the up, to 678 million, which is an increase by 10 per cent year on year. This substantial user base reinforces Spotify’s position as the leading music streaming platform worldwide, with listeners spanning across nearly every country.
“The underlying data at the moment is very healthy: engagement remains high, retention is strong, and thanks to our freemium model, people have the flexibility to stay with us even when things feel more uncertain,” Daniel Ek, Spotify Founder and CEO, said. Ek has led the company since its founding, guiding it through multiple transformations in the music industry.
“So yes, the short term may bring some noise, but we remain confident in the long-term story, and the direction we’re heading in feels clearer than ever.” This confidence comes despite recent market volatility and increasing pressure from competitors like Apple Music and Amazon Music.
What’s more, Spotify’s total revenue was up 15 per cent year on year to a whopping €4.2 billion. This revenue growth demonstrates the effectiveness of Spotify’s diverse monetization strategies across premium subscriptions and advertising.
And the company’s operating income increased to €509 million. This represents a significant improvement over previous quarters and indicates successful cost management alongside growth initiatives.
Spotify also outlined some of its benefits, including expanding AI-narrated audiobooks with ElevenLabs. This partnership represents Spotify’s continued investment in AI technology to enhance content offerings beyond traditional music streaming.
“Authors can now tap into ElevenLabs’ high-quality AI voice narration to create audiobooks in 29 languages, making it easier to reach new listeners and bring more stories to life,” they said. The audiobook expansion highlights Spotify’s strategy to become a comprehensive audio platform rather than just a music service.
What’s more, the streaming giant told how it forked out a huge $10 billion to the music industry last year. This substantial payment reflects Spotify’s role as a major revenue generator for artists, labels, and rights holders across the music ecosystem.
“Our latest annual music economics report underscores record-breaking revenues, increased artist diversity, and a more borderless music industry than ever before,” they said. The report illustrates how streaming has fundamentally altered music distribution and consumption patterns globally.
“Spotify paid a record $10 billion to the music industry in 2024, nearly half of which went to independent labels and artists.” This distribution highlights Spotify’s role in democratizing music industry revenue streams beyond traditional major label dominance.
The company also reported significant growth in podcast listenership on the platform. Podcast content has become an increasingly important component of Spotify’s content strategy, with exclusive shows and partnerships driving user engagement.
In emerging markets, Spotify has seen particularly strong growth, with substantial increases in subscriber numbers across regions like Latin America and South Asia. These regions represent crucial expansion territories as the company continues its global growth strategy.
The earnings report also revealed the continuing success of Spotify’s premium subscription model alongside its free, ad-supported tier. The dual approach allows the platform to serve listeners at different price points while maintaining monetization opportunities.
Looking ahead, Spotify announced plans to further expand its content offerings beyond music and podcasts, with new features currently in development. The company continues to innovate in both user experience and content diversity.
Analyst reactions to the earnings report were overwhelmingly positive, with several major investment firms taking notice of Spotify’s strong performance. The company’s growth trajectory suggests continued dominance in the streaming space despite increasing competition.
The strong performance comes as Spotify continues to innovate in user experience, content diversity, and monetization strategies, cementing its position as a leader in the increasingly competitive streaming media landscape. The company’s ability to grow both revenue and user numbers simultaneously indicates the effectiveness of its business model in the evolving digital entertainment ecosystem.
