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Spotify says Covid-19 has changed listening habits of its users

By Cookie Monster - on 29 Apr 2020, 10:38pm

Spotify says Covid-19 has changed listening habits of its users

Spotify just released its financial results for Q1 2020 and revealed that listening habits have changed among its users. 

With many countries under lockdown, Spotify shared that user's daily routines are changing. There is less listening done via its app in cars and wearable devices, which has a bigger impact on podcasts than music. Music listening through TVs and game consoles has gone up over 50%. 

“Morning routines have changed significantly,” says Spotify. “Every day now looks like the weekend.”

While Spotify managed to grow its monthly active user and subscriber bases by 31% to 286 million and 130 million respectively, it expects the Covid-19 pandemic to affect some areas of its business.

The ad business unit has been hit harder as advertisers spend less money. As a result, its ad-supported revenue missed its target and its revenue guidance for the rest of the year has been lowered. 

Spotify states that it is slowing down hiring plans, which is a similar move that Google is taking for the rest year. The company maintains a positive outlook and believes its business model is "uniquely positioned" to deal with the crisis caused by the coronavirus outbreak.

Source: Spotify via The Verge