Spotify Premium ARPU
Spotify Premium ARPU 2016-2021
The following table shows Spotify's premium ARPU (Average Revenue Per User) from 2016 to 2021.
Spotify is the world's leading music streaming network with a strong global presence. It offers its services across 184 countries and territories. The company has expanded its presence worldwide to several new markets in 2021. In 2020, it offered its services across only 93 countries and territories.
The user base of the company has also increased at an impressive rate in 2021 compared to 2020. At the end of 2021, Spotify's Monthly Active Users numbered around 406 million compared to 345 million in the prior year. The company offers premium subscriptions and free ad based accounts for its users worldwide. Its premium users are its largest source of revenue.
Based on the above table, as the number of Spotify premium subscribers has increased, its Average Revenue Per User has declined. However, in 2021, its ARPU remained flat compared to the prior year. The ARPU for 2021 remained €4.29 compared to €4.31 in 2020. The small decline was mainly a result of movement in foreign currency exchange rates. However, the decline was partially offset by the company's price increase across its family Plan.
Spotify enjoyed improved financial performance in fiscal 2021 compared to the prior year. Its total net revenue for the year in 2021 was €9.7 billion compared to €7.9 billion in 2020 or an increase of 16%.
The company generated €8,460 million in 2021 from premium subscriptions compared to €7,135 million in 2020. Its net revenue from ad based users was €1.2 billion in 2021 compared to €745 million in 2020.
Spotify's cost of revenue for 2021 remained €5,865 million compared to €5,042 million in 2020.
The company has increased its investment in research and development as well as marketing and sales as its financial performance has continued to improve. In 2021, the company experienced a significant decline in its net loss compared to the prior year. Its net loss in 2021 was €34 million compared to €581 million in 2020.