Is Spotify Losing Subscribers? Details About Spotify Controversies

Is Spotify Losing Subscribers?

Spotify, the Swedish music streaming service, revealed a threefold net loss in 2020, claiming rising operating expenditures as a reason, despite the fact that the number of paying members continued to rise. The number of monthly users reached 345 million by the end of 2020, up 27% over the previous year.

Although Spotify has more paid subscribers than any other audio streaming service in the world, its market share is shrinking. According to recent data, Spotify has the greatest subscriber market share in the global streaming sector in Q2 2021, with 31 percent.

However, the corporation is still losing money, due to a combination of prolonged free trials and reduced promotional offers, as well as permanently inexpensive subscriptions in emerging countries like India, to build its user base. Continue reading to discover more about the Joe Rogan controversy and whether it is related to Spotify losing subscribers or not!

How Many Subscribers has Spotify Lost?

Since the issue over Joe Rogan's podcast erupted, 19% of Spotify customers have terminated their memberships, according to new research.

Following the publication of the letter, Neil Young ordered that his music be deleted "immediately," and many other well-known artists, including Joni Mitchell, David Crosby, and Graham Nash, followed suit.

However, 54% of respondents indicated they have no intentions to unsubscribe, another 18.5 percent said they would reconsider quitting if more music was taken off the network.

Spotify CEO Daniel Ek stated on Thursday (February 3) that it was "too early to know" what influence the controversy surrounding Rogan's show will have on the team's growth. Spotify's stock has dropped more than 10% since the scandal started, and on January 30, it was claimed that the service had dropped more than $2 billion (£1.5 billion) in market value.

He added: “Usually when we’ve had controversies in the past, those are measured in months, not days,”

“We don’t change our policies based on one creator, nor do we change based on any media cycle or calls from anyone else.”

TRENDING

USA Today Crossword Answers for March 21, 2024

182 days ago

Daily Themed Mini Crossword: 21 March 2024 Answers

182 days ago

Get your NYT Mini Crossword Solution for Today March 21, 2024

182 days ago

Answers Revealed Check The Independent's Mini Crossword Clues for March 21 2024

182 days ago

Why Spotify Loses Subscribers?

Despite the fact that Spotify is the most popular streaming platform, with 31% of the market, its supremacy is constantly eroding. It owned 33% of the market in 2020 and 34% in 2019. In the year preceding up to Q2 2021, Spotify gained more overall members than its rivals, however Spotify expanded by 20%, Amazon Music increased by 25%. Meanwhile, Google's YouTube Music boosted its overall market share by over 50% in the year leading up to Q2 2021, leaving it the only Western streamer to do so. Tencent Music, a subsidiary of the Chinese gaming behemoth Tencent, has the same % market share as Amazon Music. One of main reasons is considered to be the Joe Rogan controversy.

Joe Rogan COVID Podcast Controversy

Joe Rogan, a US podcaster, apologised on Saturday for using racist language in the past, such as the "N word," and said at least one objectionable episode of his show had been removed from Spotify.

In a nearly-six-minute Instagram post Rogan addressed: "My sincere and humble apologies," he called it "the most regretful and shameful thing that I've ever had to talk about publicly."

The 54-year-old admitted that a podcast episode about him attending a movie in a Black neighbourhood where he remarked "it was like we were in 'Planet of the Apes,' "was erased.

"I never used it to be racist, because I'm not racist," 

But there is "no context where a white person is ever allowed to say that word, nevermind publicly on a podcast," he said.

"If a white person says that word it's racist and toxic, but a Black person can use it and it can be a punchline, it can be a term of endearment, it could be lyrics to a rap song, it could be a positive affirmation."

Rogan added: "It's a very unusual word, but it's not my word to use. I'm well aware of that now."

Spotify loses subscribers 2021

The stock of Spotify declined dramatically on Thursday as a result of the controversy surrounding Rogan's show, which has up to 11 million audiences per episode.

Music icons Neil Young and Joni Mitchell, among others, requested that their songs be taken down from the network in protest of Rogan, who has been accused of spreading disinformation about Covid-19 and vaccinations, either personally or through the guests he features on his program.

However, this has a bearing on Spotify's subscriber numbers. 

Spotify has since announced that all linked podcast episodes would now include COVID content warnings. Listeners will be routed to a resource portal featuring "links to trusted sources" and professional expertise.

Has Spotify Lost Subscribers?

Though Spotify did not lose subscribers, its market value has been pulled down.

The number of paying subscribers, which is the streaming service's main source of revenue, climbed by 24% to 155 million. Spotify, which is based in Stockholm but is publicly traded on the New York Stock Exchange, indicated in October that by the end of the year, it hoped to have between 340 and 345 million active users and 150 to 154 million paid subscribers.

The company said in a statement: "We believe the pandemic had little impact on our subscriber growth and may have actually contributed positively to pulling forward new signups." 

Due to increased operating costs, Spotify's economic loss more than quadrupled from 186 million euros in 2019 to 581 million euros ($698 million). In the fourth quarter, operating costs grew by 17% year over year, as social costs such as payroll taxes and stock-based bonus fees weighed on the company's bottom line. Spotify reported sales of around 7.9 billion euros, up 16.5 percent year over year and in line with expectations.

Is Spotify Losing Subscriber|Related Searches

Is Spotify Losing Subscribers

How Many Subscribers has Spotify Lost

Has Spotify Lost Subscribers

Spotify loses Subscribers

How Many Subscribers does Spotify have

Spotify loses subscribers 2021.