Despite only having released in India in late February, Spotify has already begun building an audience in the country. The company says more than one million users signed up in the first week, more than doubling in the next four weeks.
Unfortunately, despite these numbers rising, Spotify can not turn that success into profits, losing € 142 million ($ 158 million) in the quarter. That number actually looks bad if you compare it to € 442 million ($ 493 million) in profit made in December.
If there is reason for optimism, it is that the loss is better than sustained in the same period of 2018, when it lost 169 million euros (188 million dollars). Unfortunately, Spotify put the blame for this loss on its employees (who, because the stock price went up, received bigger bonuses) and paid their fair share of taxes.
Spotify does not expect crazy profits soon, but hopes to strengthen its participation in the global music market. Between your agreements with Google, Samsung and Hulu, people will not be able to move through offers to sign up for the streaming service.
The company is looking at podcasting as a way to strengthen its future, since, as we explained earlier, podcasts are cheap and have dedicated audiences. Despite having just bought Anchor and Gimlet, Spotify has seen revenue from its exclusive podcasts supported by increased ads, with more expected to come.
It remains to be seen whether Spotify's proxy war with Apple in Europe will come to anything, but those numbers make it harder for the company to be painted as the little boy. After all, its best-financed North American rival has less than a quarter of its total number of users, no matter how much Daniel Ek claims.