Tag: Revenue

Spotify and Universal Music Group Announce Landmark Licensing Agreements for Fan-Made Covers and Remixes

May 21, 2026

a graphic green design of rectangles with the green spotify logo on top

Groundbreaking responsible AI tool to launch as paid add-on for Spotify Premium users  

Spotify and Universal Music Group (UMG) today announced landmark recorded music and music publishing licensing agreements enabling Spotify to launch a new tool allowing fans to create covers and remixes of their favorite songs from participating artists and songwriters.  

This groundbreaking tool will be powered by generative AI technology that will open up additional revenue streams and new ways to drive discovery. It introduces a creation model where artists and songwriters can directly share in the value generated through AI-driven licensed covers and remixes on the Spotify platform.  

The new tool will launch as a paid add-on for Spotify Premium users and create an additional source of income for artists and songwriters, on top of what they already earn on Spotify.  

“Solving hard problems for music is what Spotify does, and fan-made covers and remixes are next. What we’re building is grounded in consent, credit, and compensation for the artists and songwriters that take part. Through each technological transformation, we have worked together with Sir Lucian and his team to evolve the music ecosystem into a richer, more beneficial experience for fans and a more rewarding outcome for artists and songwriters,” said Alex Norström, Co-CEO, Spotify.  

“The most valuable innovations in the music business always bring artists and fans closer together. That principle is at the heart of this pioneering AI-enabled superfan initiative, which is designed to support human artistry, deepen fan relationships, and create additional revenue opportunities for artists and songwriters. Building on our long track record of leading the industry through technology changes, and collaborating with Alex, Gustav, Daniel and the team at Spotify, this initiative is firmly artist-centric, rooted in responsible AI, and will drive growth for the entire ecosystem,” said Sir Lucian Grainge, Chairman & CEO, Universal Music Group.

About Spotify 

Since its launch in 2008, Spotify has revolutionised music listening. Our move into podcasting brought innovation and a new generation of listeners to the medium. In 2022, we took the next leap, entering the fast-growing audiobook market—continuing to shape the future of audio. Today, more listeners than ever can discover, manage and enjoy over 100 million tracks, 7 million podcast titles, and 700,000 audiobooks on Spotify. We are the world’s most popular audio streaming subscription service with 761 million users, including 293 million subscribers, in 184 markets.

About Universal Music Group 

At Universal Music Group, we exist to shape culture through the power of artistry. UMG is the world leader in music-based entertainment, with a broad array of businesses engaged in recorded music, music publishing, merchandising, and audiovisual content. Featuring the most comprehensive catalogue of recordings and songs across every musical genre, UMG identifies and develops artists and produces and distributes the most critically acclaimed and commercially successful music in the world. Committed to artistry, innovation, and entrepreneurship, UMG fosters the development of services, platforms, and business models in order to broaden artistic and commercial opportunities for our artists and create new experiences for fans. For more information, visit www.universalmusic.com. 

Spotify Reports Third Quarter 2025 Earnings

November 4, 2025

Today, we announced our third quarter 2025 earnings, marking strong momentum as we surpassed 700 million Monthly Active Users and achieved double-digit subscriber growth. We continue to deliver on our focus of Accelerated Execution, launching new updates and features across music, podcasts, and audiobooks, and further adding value for users and creators around the world. Take a look at the highlights below:

    • Subscribers climbed 12% Y/Y to 281 million.
    • Monthly Active Users grew 11% Y/Y to 713 million.
    • Total Revenue increased 12% Y/Y constant currency* to €4.3 billion.
    • Gross Margin improved by 56 bps YoY to 31.6%.
    • Operating Income reached €582M.

“The business is healthy. We’re shipping faster than ever. And we have the tools we need – pricing, product innovation, operational leverage, and eventually the ads turnaround – to deliver both revenue growth and profit expansion,” said Daniel Ek, Spotify’s Founder and CEO. “It all comes back to user fundamentals and that’s where we are: 700 million users who keep coming back, engagement at all-time highs. We’re building Spotify for the long-term.”

Interested in hearing more? Click here to review the full earnings release and listen to the webcast Q&A on our Investor Relations site here.

*Constant currency adjusted measures are non-IFRS measures. See reconciliation of IFRS to non-IFRS results below for additional information.

Spotify Reports Fourth Quarter 2024 Earnings

February 4, 2025

Today, we announced our fourth quarter 2024 earnings, closing Q4 stronger than ever by outperforming across key metrics and celebrating our first full year of profitability. Take a look at the highlights below:

  • Monthly Active Users grew 12% Y/Y to 675 million.
  • Subscribers increased 11% Y/Y to 263 million.
  • Total Revenue was up 16% Y/Y to €4.2 billion.
  • Gross Margin climbed by 555 bps YoY to 32.2%.
  • Operating Income rose to €477 million.

“I am very excited about 2025 and feel really good about where we are as both a product and as a business,” said Daniel Ek, Spotify Founder & CEO. “We will continue to place bets that will drive long term impact, increasing our speed while maintaining the levels of efficiency we achieved last year. It’s this combination that will enable us to build the best and most valuable user experience, grow sustainably and deliver creativity to the world.”

Interested in hearing more? Click here to review the full earnings release and listen to the webcast Q&A on our Investor Relations site here.

Spotify Reports Third Quarter 2024 Earnings

November 12, 2024

Today, we announced our third quarter 2024 earnings where we outperformed across key metrics, moving us one step closer to a full year of profitability. Take a look at the highlights below:

  • Monthly Active Users grew 11% Y/Y to 640 million.
  • Subscribers increased 12% Y/Y to 252 million.
  • Total Revenue was up 19% Y/Y to €4 billion.
  • Gross Margin reached 31.1%.
  • Operating Income improved to €454 million.

“We’ve never been in a stronger position, thanks to the outstanding execution by our team. I’m incredibly proud of the way we’ve delivered and the progress we’ve made,” said Daniel Ek, Spotify Founder & CEO,“We’re where we set out to be—if not a little further—and on a steady path toward achieving our long-term goals. This relentless pursuit of innovation and commitment to growth sets us up to deliver the most valuable user experience in the industry, while reinforcing the core strengths that make Spotify unique. I am very excited about what lies ahead for us.”

Interested in hearing more? Click here to review the full earnings release and listen to the webcast Q&A on our Investor Relations site here. 

Spotify Reports Second Quarter 2024 Earnings

July 23, 2024

Today, we announced our second quarter 2024 earnings. Led by healthy subscriber gains, improved monetization, and record profitability, Spotify reported…

  • Monthly Active Users grew 14% Y/Y to 626 million.
  • Subscribers increased 12% Y/Y to 246 million.
  • Total Revenue was up 20% Y/Y to €3.8 billion.
  • Gross Margin reached 29.2%.
  • Operating Income improved to €266 million.

“It’s an exciting time at Spotify. We keep on innovating and showing that we aren’t just a great product, but increasingly also a great business,” said CEO Daniel Ek. “We are doing so on a timeline that has exceeded even our own expectations. This all bodes very well for the future.”

Interested in hearing more? Click here to review the full earnings release and listen to the webcast Q&A on our Investor Relations site here.

Spotify Reports First Quarter 2024 Earnings

April 23, 2024

Today, we announced our first quarter 2024 earnings. In a solid start to the year, Spotify reported…

  • Monthly Active Users grew 19% Y/Y to 615 million.
  • Subscribers increased 14% Y/Y to 239 million.
  • Total Revenue was up 20% Y/Y to €3.6 billion.
  • Gross Margin reached 27.6%.
  • Operating Income improved to €168 million.

“We’ve talked about 2024 as the year of monetization and we’re delivering on that ambition,” said Spotify co-founder and CEO Daniel Ek. “Now as we’ve shifted to focus on strong revenue growth and margin expansion, we see a clear opportunity to ensure we are also continuing to grow the top of our funnel. I feel good about the changes we are implementing and remain very confident in our ability to reach the ambitious plans we’ve outlined.”

Interested in hearing more? Click here to review the full earnings release, and listen to the webcast Q&A on our Investor Relations site here.