Spotify reports strong Q2 growth and kills cars

Popular music streaming service Spotify has released its Q2 2022 report, and there is some interesting news.

Spotify Q2 2022 highlights

Here’s some good news about Spotify.

The number of active users increased by 19% compared to the same period in 2021, totaling 433 million.
The number of paying subscribers rose to 188 million (14% more than a year ago).
Revenue from the ad-supported service increased by 31%.
Taking into account both subscribers and advertising, Spotify claims that its revenue increased by 20% compared to the same period in 2021.
In related growth news, Spotify hosted 4.4 million podcasts at the end of June, up from 4 million in March (Q1).

While the overall revenue and subscriber news is positive, Spotify reported an operating loss of $194 million in the second quarter. However, Spotify is far from suffering from the trends other media companies are experiencing, such as mass layoffs and/or declining subscribers.

Acquisitions

In the second quarter of 2022, Spotify acquired two technology companies that it believes will improve its service.

Find a way: Hopefully, Findaway will help Spotify accelerate its entry into the audiobook market.
Sonantic: This is an artificial intelligence audio platform that creates audio from text. With this acquisition, Spotify is exploring this technology to enhance user interaction with Spotify content and features.
Spotify Live

Spotify is devoting more resources to its Spotify Live service, which gives users the opportunity to interact with fans and content creators. Check out the details.

Where is Spotify HiFi?

The above good news, acquisitions and commitment to Spotify Live are positive, but the long-promised addition Spotify HiFi, which was first announced in early 2021, has still not materialized in 2022, and there is no official word on when it will take what exact form and what there will be a price, if any.

As a result, Spotify will lose ground in the long run to services like TIDAL, Qobuz, Amazon, and Apple Music, all of which offer higher-resolution music streaming.

The end of the car

In addition to its general health (with the exception of the Spotify HiFi mystery), Spotify has decided to discontinue the Car Thing product.

If you haven’t heard of Car Thing, you’re not alone. Spotify launched Car Thing in April 2021, by invitation only. It was designed and marketed as a car dashboard-mounted streaming device that would provide access to Spotify content, but demand never really took hold and supply chain issues didn’t help, so Spotify decided to end it.

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