Spotify expects lower profit and fewer new subscribers due to corona fuss
Spotify expects the profit margin to be slightly lower than it has been in recent times. The Swedish streaming service also thinks it will welcome fewer new subscribers in the near future.
The streaming service gave no reason for the disappointing forecast, but did say that it is more difficult to express an expectation due to the uncertainty surrounding the corona virus.
Spotify has been discredited in recent weeks after several major artists decided to remove their music from the service. According to the musicians and other critics, comedian Joe Rogan would spread incorrect information about corona in his Spotify podcast.
Podcasts have been a key driver of Spotify’s growth. At the end of the previous quarter, there were 3.6 million podcasts on the platform, 400,000 more than in the previous quarter. The share of podcasts in total hours listened also hit an all-time high.
The company’s expected profit margin is 25 percent this quarter, 1.5 percent less than in the fourth quarter of 2021, when Spotify made a profit of 26.5 percent. It is expected to add three million paid subscribers, compared to eight million in the last quarter of last year.
Crosby, Stills and Nash also leave Spotify
After Neil Young left Spotify last week over Rogan’s offending podcasts, his former bandmates have also taken a stand against the music service. David Crosby, Stephen Stills and Graham Nash have asked their labels to remove their work from Spotify.
Not only opponents of incorrect information are leaving Spotify: the spreaders of possible disinformation are also giving up, but for a completely different reason. Dutch podcast maker Jorn Luka, who had previously moved from YouTube to Spotify, decided to remove all his podcasts from the streaming platform after Spotify took some episodes offline.