Spotify has lost its opportunity for increasing number of subscribers as many companies giving it a tough competition in the music streaming sector.
The Swedish company currently added 8 million paid subscribers, taking its aggregate to 108 million, yet at the same time 500,000 less than it had anticipated. On Wednesday, Spotify’s shares dropped down to 5 percent following the announcement of investors.
Spotify’s founder Daniel Ek stated that the company didn’t get as many subscribers as they had predicted, and that is on them. He also added that the company was expecting to make up the missing spot before the year ends.
Spotify is the most popular mainstream music streaming service worldwide. It has practically twofold of the quantity of paid subscribers from its closest adversary Apple.
Around 90 percent of Spotify’s worldwide revenue comes from its subscribers, which rose to €1.5bn (£1.3bn) in the subsequent quarter.
The company faces repeated challenges, not from Google and Amazon, who have started free music streaming recently. Amazon and Google provide music streaming through their smart speakers and they wish to increase the number of subscribers.
Recently Spotify has filed a complaint against Apple to the European Commission, blaming the company for smothering competition to the loss of customers. Spotify contended that Apple makes it tough for the third-party streaming services to set up themselves on their gadgets, e.g. iPhone and iPad.
Buying apps and subscriptions on Apple gadgets are paid only via Apple’s payment method. Apple holds a 30 percent cut of these returns, also for Spotify’s premium service.