People are changing the way Spotify listens as a result of the global COVID-19 epidemic. Spotify achieved a three-month forecast that ended on March 31, but pointed out that people's daily lives are changing. “The morning routine has changed significantly. "Every day looks like a weekend."
Speak. As more people work and study at home, people hear Spotify and do not go to work in the morning, and the sound they hear through service vehicles and wearable apps is reduced. Spotify says this has had a greater impact on podcasts than music. However, other devices seem to solve some problems. The company says the audience listening through TV and game consoles has increased by more than 50%.
Spotify admits that the epidemic has had a negative impact on some areas of the business and will continue to do so. The company says these figures have recovered in some regions, but consumption and daily active users have affected markets like Italy and Spain, which have been hit by early epidemics. However, the number of active users and paid subscribers per month did not decrease in regions with reduced consumption.
Because of the economic uncertainty, Spotify's advertising business was hit harder than anything else, as companies spend less on advertising. The company says its ad-supported revenues fell short of forecasts, and as a result, lowered this year's earnings guidelines. Spotify also says it is delaying recruitment plans for the remainder of the year. However, the company as a whole is optimistic and I think the business model is in a "unique position" to deal with the ongoing crisis.
According to Spotify, there are currently 280 million active users (31% increase) and 130 million subscribers (31% increase) worldwide. Spotify revealed that even though the total number of users who revoked their accounts was reduced overall, one out of six people who revoked their accounts in the United States cited for reasons of COVID-19, and added plans to renew their accounts if economic conditions improved. Wall Street Journal note.