Spotify grows despite controversy over podcast platform
Music streaming market leader Spotify continued to grow last quarter, despite the controversy surrounding its podcast star Joe Rogan. The Swedish company ended the quarter with 182 million subscription customers. That was two million more than at the end of 2021.
Spotify thus also digested the abrupt loss of 1.5 million customers in Russia, where the service ceased operations in the face of international sanctions due to the war in Ukraine.
For the second quarter, Spotify expects growth to 187 million subscription customers. The forecast remained below the estimates of analysts, who rather assumed a good 189 million customers. Subscription fees are still Spotify's most important source of revenue, even though the service is now earning more and more from advertising in podcasts, among other things.
Revenue grew 24 percent year-on-year in the first quarter to 2.15 billion euros, Spotify reported Wednesday. Bottom-line profit shot up to 131 million euros from 23 million euros a year earlier.
Popular US podcaster Joe Rogan, who publishes his talk programs exclusively on the Spotify platform, had recently brought negative headlines to the service. After a debate about false information on the corona virus in his podcasts, he also had to apologize for racist remarks. One focus of the quarterly figures was whether the controversy had hurt Spotify's business. (SDA)
