Spotify's MAU Growth Is Set to Slow, but Co-CEO Says Free-Tier Changes Will Drive More Revenue and Paid Subscribers

Spotify Technology S.A. (NYSE: SPOT ) expects monthly active user growth to slow in the third quarter as it adjusts its free-tier strategy in emerging markets, prioritizing long-term monetization and subscriber conversion over rapid user expansion. Spotify Shifts Focus From Growth to Monetization During Spotify’s second-quarter earnings call, Co-CEO Alex Norström said the company has outperformed its MAU growth expectations for several years, with emerging markets contributing significantly over the past four or five quarters. Countries including India and Indonesia have helped expand Spotify’s user base because of their large populations, Norström said. However, Spotify is now modifying its product strategy in those markets as it works to build a more profitable business. "We’ve had a few years of outperformance in MAU," Norström said, adding that Spotify is "really in a good place"...