As Spotify's ARPU Drops, Subscriber
Bulletin YOUR DAILY ENTERTAINMENT NEWS UPDATE JUNE 3, 2021 Page 1 of 34 INSIDE Upside/Downside: As Spotify’s • As Chinese ARPU Drops, Subscriber ‘Lifetime Regulators Hover, Tencent Music’s Value’ Has Grown Rivals Chip Away At Its Dominance BY GLENN PEOPLES • Inside Track: Apple Music Is Clearing At Spotify, “Our continued focus is on reaching more expansion in countries with lower prices, telecom DJ Sets; Twitch listeners, as ultimately this will translate into long- bundling, student deals and family plans. When Spo- Distances From term value for our investors,” said CEO Daniel Ek on tify makes less per user, of course, so do creators. Dance Music an October 2020 earnings call. What some creators see as bad news, however, • Jam Bands Lead The company’s strategy has always been that might be good for Spotify — and, perhaps eventually, a Concerts Revival, growth comes before everything else — to the oc- those creators as well. Spotify says the leading factor Aided By casional frustration of creators, who are sometimes in ARPU erosion is its family plan, which allows up Livestream Boom more interested in today’s royalty payouts than to six members of a household to use one account for • Spotify Co-Head of tomorrow’s valuation. On the same call, CFO Paul $14.99 in the United States. (Amounts differ by coun- Music Marian Dicus Vogel said, “For us, it has historically been about re- try.) That makes average revenue decline because that Leaving for Netflix ally thinking about growing users and subscribers first payment is split among more users.
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