Spotify Hits New Active User Milestone
Spotify today has confirmed it has passed a significant mile marker -- one that will help it in its quest for advertising dollars.
The last the public heard about Spotify's monthly active users was within the company's 2015 financial filing, in which it reported 89 million monthly active users at the end of the year. The figure was first reported by the Wall Street Journal. As last night's Silicon Valley pointed out (spoiler-free observation incoming) -- an app's install base is not as important as the number of people actually using it.
An annual study of the advertising and entertainment industries conducted by PricewaterhouseCoopers (PwC) found that "the migration of traditional ad spend to digital (including mobile) arguably still lags behind consumer adoption of the new platforms and devices." While that may be true, the digital advertising pie is far from diminutive, hitting $59.55 billion last year in the U.S. Of that, investment in mobile ads is accelerating much faster than desktop, good news for platforms, like Spotify, which offer a particularly strong mobile experience.
CEO Daniel Ek will be taking part in a discussion during Cannes Lions, the annual advertising convention, this Wednesday (June 22). A quiet hire, confirmed to Billboard last week also pointed to the company's plans for an IPO to be accelerating -- and having a strong advertising business on top of its growing subscription base will be expected by new investors.