Global music streaming giant Spotify reported an 11% year-on-year increase in monthly active users, reaching 713 million in the third quarter of 2025, surpassing projections of 710.6 million. The growth was largely driven by stronger-than-expected subscriptions and expanding audiences across multiple regions.
Subscription Price Increases Across Multiple Markets
In August, Spotify raised its subscription prices by about 9% in several markets, including South Asia, the Middle East, Africa, Europe, Latin America, and the Asia-Pacific. The platform’s user base continues to expand, growing from 518 million in Q1 2024 to 602 million in Q1 2025, a 16% year-on-year increase.
Regional Distribution of Users
As of 2025, Europe accounts for 32% of Spotify’s global users (about 192 million), while North America contributes 19% (114 million users). African users currently represent around 2% of total monthly active users, though adoption is accelerating due to mobile-first listening habits.
Financial Performance and Profit Recovery
The streaming giant reported $4.9 billion in revenue for its latest quarter, a 7% year-on-year increase driven mainly by premium subscriptions. The company’s shares rose 4.2% in premarket trading following the announcement.
Operating income reached €582 million, up 43% from a year earlier, while net profit climbed to €899 million, a sharp turnaround from the €86 million loss in 2024.
Challenges and Strategic Focus
Though the ad-supported segment fell 6% amid pricing pressures, overall profitability improved as marketing and operating costs declined.
Chief Executive Daniel Ek said the company remains focused on “pricing, product innovation, operational leverage, and eventually the ads turnaround to deliver both revenue growth and profit expansion.”
How Much Does Spotify Pay Per Stream?
Spotify typically pays between $0.003 and $0.005 per stream, depending on factors such as listener location, subscription type, and local currency rates. The platform operates on a 70/30 revenue-sharing model, with 70% of revenue distributed to rights holders and 30% retained by Spotify.
In African Reality Check
The story, however, runs deeper across Africa. Artists on the continent earn far less per stream than their peers in wealthier regions, despite expanding global audiences.
One million streams from African listeners may generate around $300, while the same number in Europe or the United States could earn up to $10,000.
This gap stems from purchasing power differences and localized pricing models used by streaming platforms.
Services like Spotify adjust subscription costs to reflect local economies. In many African countries, premium plans cost between $1 and $3 per month, compared with about $10 in Western markets. As a result, both advertising and subscription revenues per user are significantly lower, reducing overall artist payouts.
Africa’s Streaming Stars
As of October 2025, Wizkid (186 million streams), Burna Boy (176 million), and Tyla (129 million) ranked among the most-streamed African artists on Spotify, underscoring the continent’s growing influence in the global digital music economy, even as income disparities persist.
Future Trends
As Spotify continues to expand across emerging markets and diversify its content ecosystem, its royalty and payout structures remain a subject of debate among artists and industry observers.
While the company’s steady growth underscores the global appeal of streaming, conversations around artist compensation, regional equity, and sustainable monetisation are set to shape the next phase of the digital music industry, particularly in Africa, where creativity thrives but revenue still lags behind global averages.
