Spotify added more users and saw a spike in advertising revenue in its fourth quarter as the company shifted its focus toward podcasting, despite experiencing some public outcry over podcast host Joe Rogan.
Spotify recorded 406 million monthly active users, an 18 percent increase from one year earlier. Paying subscribers rose 16 percent to 180 million. Revenue from subscriptions jumped 22 percent to roughly $2.6 billion. Advertising revenue increased 40 percent to $449 million.
The figures come after rocker Neil Young pulled his music from the platform last week after issuing Spotify an ultimatum over Rogan: “They can have Rogan or Young. Not both,” he said, arguing that Rogan has used his platform to spread Covid-19 misinformation.
Rogan has spoken about Covid-19 vaccines and restrictions on his podcast, advocating against vaccine mandates for indoor events and saying that young, healthy people shouldn’t be vaccinated.
Though Spotify ultimately sided with Rogan, it has shared its content policy with the public and vowed to tag Covid-19-related content with an advisory recommending that users explore the platform’s new hub for up-to-date information from health and science experts.
Chief Executive Daniel Ek called the situation with Rogan a very complicated one during Spotify’s earnings call on Wednesday, saying the podcaster and other creators on the platform must follow its content policies, the Wall Street Journal reported. He said it was too soon to say whether the controversy was impacting subscribers.
“There’s no doubt that the last several weeks have presented a number of learning opportunities,” Ek said. “We believe we have a critical role to play in supporting creator expression while balancing it with the safety of our users.”
Other musicians have followed Young’s lead in removing their music from the platform, including Young’s former bandmates David Crosby, Stephen Stills and Graham Nash. Other musicians have sought to remove their music from the platform as well, including India Arie, Joni Mitchell and Nils Lofgren.
Meanwhile, Rogan has issued an apology and vowed to be more balanced and informed about controversial topics and guests.
Spotify shares, which were down 44 percent over the past year at $191.92, dropped another 11 percent in after-hours trading as the company said it wouldn’t provide annual guidance, according to the Wall Street Journal.
Spotify financial chief Paul Vogel said on the company’s earnings call that while the company wasn’t providing annual guidance, it did not expect any material change this year in its user-growth trajectory.
The company said it expects monthly active users of 418 million, premium subscribers of 183 million and revenue of $2.9 billion in the current first quarter, according to FactSet.
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