Spotify: up to 5 percent of users free version bypasses ads

Jul

26

2018

Spotify estimates that less than 5 percent of users of the free version apply methods to bypass ads. This is evident from the quarterly figures of the company. Spotify now has 180 million members of which 83 million paying subscribers.

According to Spotify’s estimate, there would be a maximum of 9 million people who circumvent advertisements at the music streaming service. Spotify explains the number of people doing this because it has adjusted figures on the number of active users with retroactive effect. At the presentation of the quarterly results for the first quarter, Spotify said it had a total of 170 million users . Now the streaming service says it was 173 million users at the time. Earlier, 3 million people were not counted because they possibly avoided ads. From now on, Spotify also counts those users on its figures, because those people are responsible for costs and because other internet companies do the same.

The estimate of a maximum of 5 percent is higher than the number of people that Spotify did not count with their figures before. The company does not explain what the estimate is based on. However, Spotify has previously indicated that last year two million users were detected that bypass ads.

Furthermore, Spotify says to remove users who are considered ‘fake’. For example, it concerns users and bots who only play music to influence the statistics or payouts of royalties. Spotify does not say that it can exclude all fake users because it is not able to discover all of them. The extent of the percentage of such bogus accounts does not mention the streaming service.

In its quarterly figures , Spotify reports that it now has 180 million monthly active users. Of these, 83 million have a subscription. In the previous quarter there were 75 million paying subscribers. Revenue amounted to $ 1.27 billion in the quarter, 26 percent more than in the same quarter last year. Spotify still does not make a profit: the loss amounted to 90 million dollars.

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