Spotify doubled its ad revenue from a year ago as it continues to invest heavily in sports audio.
The 15-year-old audio streaming company posted $2.75 billion in Q2 revenue, a 17% bump from the same period last year. Monthly subscribers rose 20% to 165 million, and active ad-supported users were up 24% to 210 million.
The company’s ad revenue rocketed up 110% year-over-year to $324.4 million. Ad sales increased 28% from Q1, despite only 1% growth among users with ad-supported memberships.
While it started with a heavy focus on music, Spotify has sought new users through sports content.
- In March, Spotify made sports a centerpiece of its live audio push by acquiring Locker Room and its creator, Betty Labs. The app relaunched as “Spotify Greenroom” in June.
- In February 2020, Spotify acquired The Ringer and its 30+ sports and culture podcasts for $196 million.
- Last August, Spotify and Riot Games partnered to create a hub for “League of Legends” esports podcasts.
Spotify CEO Daniel Ek would like to take his sports ties a step further. Ek, who has a net worth of $4 billion, put together a $2.83 billion bid for Arsenal FC. The offer was rebuffed by owner Stan Kroenke.