Published: Mon, March 26, 2018
Science | By Joan Schultz

Spotify Projects Slower Growth, 90 Million-Plus Subscribers by End of 2018

Spotify Projects Slower Growth, 90 Million-Plus Subscribers by End of 2018

Spotify free-tier users using ad blockers will soon be unable to run hacked versions of the popular streaming service.

The music streaming service offers a free version supported by ads, and a Premium version - which is £9.99/month in the United Kingdom - which allows users to listen ad-free and download music to listen to offline. The platform has 38 million paying subscribers which is just over half of Spotify's paying users. The rest of the subscribers, about 86 million, are supposed to listen to advertisements in between listening to music.

According to recent numbers, Spotify boasts 157 million monthly active users, of which 71 million are paying Premium users. Our Premium Subscribers include all registered accounts in our Family Plan. The fraudulent users represented 1.3 percent of its total user base.

In an amended filing with the U.S. Securities and Exchange Commission, the company expects shareholders to sell up to 55.7 million ordinary shares.

Spotify revealed the findings as part of their risk assessment, ahead of their public offering on April 3. They've cracked down on people using the apps, and have taken to warning users and banning repeat offenders.

Those users with modded apps also don't contribute to Spotify's bottom line, but they do increase costs for the company in the form of paying out royalties for streaming music without giving back any ad revenue. A Spotify rep confirmed the notices to Variety. Revenue grew by 39% in 2017, but the company expects this year's growth to be in the 20-30% range. Its operating loss was US$461 million (AU$596 million), compared with around US$425 million (AU$550 million) in 2016.

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