What Does 1 Million Premium Subscribers Mean For Spotify?

Music streaming service Spotify (SPOT) has hit 100 million premium subscribers since its launch more than 10 years ago. The company, which offers its music platform in 79 markets, announced the milestone along with its first-quarter earnings report.

Revenue reported from the company increased by 33 percent to $1.69 billion, which was above analyst estimates.

Spotify had 217 million monthly active users in March, which is an increase from the 173 million users it had in the same quarter of 2018. However, the total monthly active users were just below the estimates made by analysts of 218.6 million, NBC News reported.

Spotify premium users were up from the first quarter of 2018 by 25 million users. Analysts predicted the company to have 99 million paid subscribers, the news outlet said.

With the news of the 100 million premium subscribers, Spotify shares soared by nearly 5 percent. The company’s premium subscription is a paid program that offers “ exclusive features including offline mode, improved sound quality, Spotify Connect and ad-free listening. ”

To commemorate the 100 million premium subscribers, Spotify launched a new playlist that features numbers in the song title that add up to 100 million.

Spotify’s music streaming service was first launched in Sweden in 2018. It recently launched the service in regions of India, the Middle East, and North Africa. India currently has 2 million users. The company went public a year ago.

Shares of Spotify stock were down 1.63 percent as of 11:39 a.m. ET on Monday.