(Reuters) – Spotify Technology SA on Wednesday forecast current quarter revenue largely below analyst estimates, as the streaming service spends more on promotions to keep and lure listeners in its battle against Apple Music and Amazon.
Shares of the company were down 5% at $148 before the bell.
Spotify’s paid subscriptions rose a better-than-expected 29% in the fourth quarter largely from discounted promotional plans, but revenue missed Wall Street expectations.
The company ran several campaigns in the quarter, including a “3 months on us” intro offer for new users, and a win-back offer for returning customers.
Spotify is also spending more on podcasts, trying to keep pace with its two closest rivals – Apple Music with more than 60 million subscribers as of June and Amazon, which has more than 55 million subscribers globally.
Paid subscribers, which make up nearly 90% of its revenue, tallied 124 million for the three months ended Dec. 31. Analysts on average expected 122…
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