Music streaming giant Spotify reports rise in paying subscribers for the first quarter of 2025. The company added that it now has 268 million paying users, marking a 12 percent growth from last year.
Spotify’s chief executive Daniel Ek said users remain loyal because of the freemium model. “Engagement remains high, retention is strong,” he said. He noted that both free and paid users help the platform stay stable even during economic uncertainty.
Spotify Reports Record Operating Profit Despite Social Charges
At the end of March, Spotify had 678 million active users, a 10 percent increase from the previous year. The company reported an operating profit of 509 million euros, up by 203 percent from last year. However, this was still below their forecast of 548 million euros.
The company blamed this on 76 million euros in social charges, which reduced the expected profit. Despite that, total sales increased by 15 percent to 4.19 billion euros. The number of paying subscribers surpassed Spotify’s forecast by 3 million.
Spotify to Raise Prices as Share Price Surges
According to reports from the Financial Times, Spotify plans to raise subscription prices in several countries in Europe and Latin America this summer. This follows a strategy they used earlier in the United States to cut costs and boost profits.
In 2024, Spotify logged its first annual profit of 1.1 billion euros. This was possible because they reduced expenses and increased subscription fees in several markets. Since the beginning of the year, Spotify shares have risen by 34 percent, making it one of the biggest winners on Wall Street.
Spotify Reports Rise in Paying Subscribers and Growth in Profit
Spotify’s strong performance in the first quarter shows the power of a stable business model. The fact that Spotify reports rise in paying subscribers, stronger sales, and its first full-year profit in 2024, signals a major shift. With more price increases coming, the company is likely to remain ahead in the global music streaming market.
