Spotify CEO Daniel Ek joins "Squawk on the Street" to discuss Spotify's quarterly earnings results, changes in how people are using the product now that more Americans are working from home, drop in advertising and more.
Spotify Technology paid music subscribers surged to 130 million in the first quarter, driving shares in the Swedish music streaming firm higher as its business model proved more resilient than expected in the coronavirus lockdowns.
A double-digit rise in quarterly revenue helped the company weather a virus-related decline in ad sales, which contributed less than 10% to overall revenue.
But Spotify, which earns by a mixture of subscriptions and showing ads to non-paying users, continued to solidify its commercial lead in streaming over Apple and Amazon.com.
“Despite all the turbulence around the world, we hit pretty much all the metrics,” Spotify Chief Executive Daniel Ek told Reuters.
The company said it started seeing a fall in users in late February in virus-affected countries such as Italy and Spain, but has seen meaningful recovery in the last few weeks.
Ek credited the company’s more than 300 partnerships with device makers and its expansion into podcasts as a few reasons for its continued appeal to an audience now trapped at home.
“Work from home appears to be increasing streaming services in general, so we don’t see users choosing between Netflix and Spotify,” Cascend Securities analyst Eric Ross said.
While usage on mobile devices and in cars dropped in the last few weeks of March, usage on video game consoles such as Microsoft’s Xbox and Sony’s PlayStation surged during the first quarter.
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22 июл 2024
