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Although consumer habits changed due to the coronavirus pandemic, the music platform reported that its monthly active users increased by 31% during the first quarter, which translates to 130 million people who pay for the premium service and 286 million total.
In the quarterly report, the Swedish company admitted that changes in habits caused by Covid-19 have affected the way people use its service. “Morning routines have changed significantly. Every day is like the weekend,” they said.
In this regard, Spotify recognized that the pandemic will have a negative effect on some areas of its business. In countries like Italy and Spain, where the coronavirus has deeply affected, consumption and active users did decrease. Although this could mean losses for the music company, the monthly active users and the number of paid subscribers have not had significant losses.
One of the areas that has been affected is advertising, but according to what management explained, the company depends less on advertising than other media, since ads represent only about 10 percent of its revenue. totals.
But not everything has been negative, since other applications have rebounded during these days. For example, demand for video game and television consoles increased. “Despite all the turmoil around the world, we have reached almost every metric,” Spotify chief executive Daniel Ek told Reuters.
On users’ music preferences, they revealed that the use of classical and chill music has increased on Spotify, along with news and podcasts with health and wellness content.
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