Spotify plans to reach one billion users by 2030

Coinciding with Investor Day, Spotify has announced that its expectations for 2030 are to have more than one billion users who will contribute a turnover of about 93,365 million euros and a gross margin of 40%, which would mean increasing the current size of the company by about ten times.

The Swedish music streaming and podcast company aims to go beyond music and podcasting, describing a reality in which 50 million artists, writers, labels, publishers, studios and other creators will be able to run their businesses and effectively monetize and promote their work to more than one billion users.

At the center is a set of software, services, products and business models tailored to specific verticals and grouped into a single consumer experience.

Daniel Eck, CEO of Spotify, noted that "we are really investing in building a fantastic multi-sector platform that has all the ingredients to become one of the truly unique creative platforms in the world. And based on what we see, we are accelerating our movements to take advantage of that opportunity in the short term. And the opportunity for value creation is very high."

Looking to the future, the company will base its growth on three key pillars:

• Ubiquity, to make Spotify available to anyone on any device. Over the past four years, the Swede has grown from around 250 partners to more than 2,000 today, with integrations ranging from wearables, such as watches, to all facets of connected living, including cars and home appliances. Ubiquity has proven to be a major driver of its users for the platform, with 28% of all our new registrations coming from these partners, up from 14% in 2018.
• Personalization. When listeners are asked what they like most about Spotify, over 81% cite our personalization, or discoverability. Spotify listeners see this as the reason not only to sign up for our service, but also to stay.
• Freemium, with the combination of a free tier with advertising and another premium subscription tier. In this way it establishes a larger and growing subscriber base, present in 65 markets around the world to 183 in just four years.

"We see the opportunity to continue imagining and exploring new verticals on our platform, within audio, but also beyond. And for each vertical, we will develop a unique set of software, services and products and business models that are going to adapt to that specific ecosystem," Ek said.