Spotify to have one billion users by 2030

Spotify to have one billion users by 2030

Co-founder and CEO Daniel Ek of Spotify, speaking at an investor day event in New York, said the ambitious goal to have one billion users by 2030 as well as an annual revenue of $100 billion could be achieved in part through an expansion of Spotify’s portfolio of podcasts and audiobooks, while making the platform a one-stop shop for content creators.

“As the world’s creator platform, we will provide the infrastructure and resources that will enable 50 million artists and creators to grow and manage their own businesses, monetize their work, and effectively promote it,”

said Ek.

The Sweden-based, New York-listed firm reported revenue of 9.6 billion euros ($10.9 billion) in 2021, implying that it would require a roughly tenfold growth to meet Ek’s target.

At the end of the first quarter of 2022, it had 422 million users, making it by far the most popular audio platform on the planet.

While in recent quarters the company’s gross margin (revenue minus costs directly related to its work) has hovered around 26%, Ek said his goal was to reach 40% also within ten years.

The company is also aiming for an operating margin (sales minus all costs before interest and taxes) of 20% a figure implying the firm would have become clearly profitable, which is not the case today.

In recent quarters, the online audio platform — now present in 183 countries and territories — has fluctuated between a modestly positive and slightly negative operating margin.

Spotify has invested more than $1 billion (about R15.3 billion) in acquiring notable podcasters as well as building a fully integrated podcast platform, from production to advertising management, to make it the world leader in the sector.

Last year, Spotify also bought the major audio book producer and distributor Findaway.

© Agence France-Presse