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Sensor Tower · Seema Shah · August 2023
MMM: Spotify's monthly active users are increasing
Spotify's monthly active users (MAUs) are increasing, with downloads up 2% month-on-month (MoM) in Q2 2023 and 8% year-on-year (YoY). Competitors Amazon Music, Sirius XM, and YouTube also saw positive download growth, while Pandora and Soundcloud experienced declines. Spotify's YoY MAU growth has been consistently positive, with average MAUs growing from 331 million per month in 2020 to 514 million in 2023. The pumpkin-spiced latte season has led to increased advertising spend and MAU growth, with a 9% MoM increase in downloads for the cohort. Starbucks saw a 4% MoM increase in MAUs in September 2022, but competitors Dunkin' Donuts and Costa Coffee had even stronger growth. Starbucks' ad spend accounted for around 40% of the cohort's spend in Q3 2022, but its YoY MAU drop was attributed to a decrease in ad spend.
Key Takeaways:
As MAUs surge on Spotify, there are also positive indicators of its growing audience with downloads increasing on average 2% MoM in 2Q23, up 8% YoY. Across the competitor set, Amazon Music, Sirius XM, and YouTube have positive downloads trajectories, up 15%, 7%, and 5% YoY in 1H23, according to Sensor Tower data
The rest of the cohort saw a decrease in downloads in 1H23, with declines coming from Pandora (-21%) and Soundcloud (-11%)
Since Jan’23, Spotify’s MoM MAU growth is nominal, varying slightly between -1 to 3%, but the YoY growth numbers are consistently positive. Average MAUs grew from 331m per month in 2020 to 514m in 2023 YTD
The season for pumpkin-spiced lattes has typically led to a surge in advertising spend and MAU growth; as of Jul’23, the cohort (including Starbucks) have had a 9% increase in MoM downloads as they head into the industry’s busiest season with organic and paid downloads up 15% and 23% MoM across the cohort
In Sep’22, Starbucks US MAUs increased 4% MoM, the first full month that the drink was offered, but the lift amongst select competitors was even stronger. Dunkin’ Donuts and Costa Coffee increased MAUs 7% and 20% MoM, respectively
Sensor Tower data also highlights how quickly these trends fade, as Starbucks’ MAUs remained flat in October until the launch of its holiday cups in Nov’22 brought a 7% MoM, the largest MoM gain in 2022
Starbucks’ US ad spend accounted for ~40% of spend in 3Q22 across the cohort, despite spending falling11% YoY. While Starbucks received a 4% MoM lift in Sep’22 MAUs, the brand experienced a 2% drop YoY when its ad spend decreased
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