Spotify Reaches Record 751M Monthly Active Users Driven by Wrapped Campaign and Enhanced Free Tier Features

10.02.2026

Swedish music streaming platform Spotify has reported unprecedented user growth in Q4, achieving a milestone of 751 million monthly active users, representing an 11% year-over-year increase. The company attributed this surge primarily to its annual "Wrapped" campaign and strategic enhancements to its ad-supported tier.

The platform onboarded a record 38 million new users during the fourth quarter, while its premium subscriber base grew by 10% to reach 290 million paying customers. The Wrapped campaign demonstrated exceptional engagement metrics, with over 300 million active participants and 630 million social media shares across 56 languages.

Financial Performance Highlights:

• Total revenue reached €4.53 billion ($5.39 billion), marking a 7% year-over-year increase
• Subscription revenue grew by 8%
• Ad-supported revenue declined 4% to €518 million ($616.6 million)
• Gross margin improved to a record high of 33.1%, up 83 basis points, driven by enhanced podcast and music advertising monetization

This strong performance coincides with a leadership transition as new co-CEOs Gustav Söderström and Alex Norström assume control from co-founder Daniel Ek. Under their stewardship, they inherit a significantly diversified platform that has evolved far beyond its original music streaming focus.

Platform Evolution and Feature Expansion:

Spotify has systematically expanded its ecosystem to include:

• Podcasts and audiobooks
• Physical bookstore ventures
• In-app music videos and video podcasts
• Social features including group chats and real-time listening sharing
• Concert ticket booking integration
• Song story exploration features

AI Integration Strategy:

The platform has aggressively integrated artificial intelligence capabilities, including:

• AI DJ with voice command personalization
• AI-generated playlist creation
• Advanced recommendation filtering allowing users to exclude specific tracks from their taste profiles

Monetization and Growth Strategy:

To improve profitability metrics, Spotify has implemented several strategic initiatives:

1. Subscription price increases across U.S. and European markets
2. Enhanced free tier functionality, enabling ad-supported users to search and select specific tracks
3. Competitive positioning against rivals including YouTube Music and Amazon Music

For the current quarter, Spotify projects reaching 759 million total users and 293 million premium subscribers, indicating continued momentum in user acquisition and platform engagement.

Tags: AI Features Spotify music streaming user growth Platform Monetization

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