Spotify CEO Daniel forecasted record payouts in 2024, talks the bundling controversy and a new premium subscription offering in the Q2 earnings call.
Spotify’s stock surged 12% on Tuesday after Spotify reported quarterly earnings that beat subscriber growth and profit margin expectations.
In a wide-ranging discussion of the company’s earnings that touched on the controversy sparked by Spotify’s audiobook bundling, its plans for a premium music tier and missing its target for monthly active user growth, Spotify chief“While many believe that Spotify has a great product, we needed to prove that we could also be a great business,” Ek said. “I think we’re really starting to show this now.
Here’s what else you should know about the global streaming giant’s most recent quarterly earnings and what was said on the call.Ek said at the top of the webcast. The streaming giant, which has for most of its 18-year history failed to be profitable, reported its third-straight profitable quarter spurred on by the addition of seven million net new subscribers, an expanded gross profit margin of 29.2% and 490 million euros in free cash flow, the most in the company’s history.
“A lot of people want to make this a zero sum game where we have to win in order for them to lose or they have to win and we sort of lose,” Ek said. “It’s not as much a zero sum game as people make it out to be. That’s not to say we don’t quibble around various things at various points. That’s the nature of all supplier and distributor relationships. Overall we have had healthy relationships with the music industry for the better part of now 18 years. … Overall the music industry is growing.
“The plan here is to offer a much better version of Spotify. So, think something like $5 above the current premium tier, so probably around $17-$18 price point, but sort of a deluxe version of Spotify that has all the benefits that the normal Spotify version has plus more control and quality across the board,” Ek said.
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