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Spotify reveals that 2m users were suppressing ads without payment

Spotify has revealed that it detected approximately two million users who have been suppressing its advertisements without payment on 21 March 2018. This was confirmed in an updated SEC filing which contains details of its recent initial public offering (IPO). This brings the tally to 157 million monthly active users, 71 million of which are premium subscribers.

The filing explained that these users were recently included in calculations for several key performance indicators (KPIs), including monthly active users (MAU), ad-supported users, content hours, and content hours per MAU.  The company also declared that while the users were excluded from the company performance for the year ending 31 December 2017, KPIs and other metrics prior to 1 January 2017 might be overstated.

Spotify most recently launched its IPO, outlining several growth strategies for its business moving forward, this includes a continued investment in its advertising business. This includes the introduction of several new advertising products such as sponsored playlists, a self-serve audio advertising platform, and a test for skippable audio advertising.

The company is looking to trade on the New York Stock Exchange under “SPOT”.  According to multiple news reports, the IPO is valued at around US$1 billion. Other growth initiatives include the expansion of its non-music content and user experience. This includes podcasts, which it looks to expand over time to include other non-music content, such as spoken word and short form interstitial video.

In January, Spotify reportedly filed for a confidential IPO, a public listing that lets companies’ list shares without raising money through a traditional stock offering. The move avoids underwriting fees and restrictions on stock sales by current owners, and doesn’t dilute the holdings of executives and investors.

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