- Markets - Around The World
- Posts
- Spotify's MAU - 1 in 12 people on Earth
Spotify's MAU - 1 in 12 people on Earth
& AI Demand is Through the Roof
Spotify’s Track Record
The audio streaming giant hit 675 million in total, marking the largest Q4 in Spotify's history. (With Earth’s population at about 8 billion, that means about 1 in 12 people in the world is a user.) The share of ad-supported users on the platform remained close to ~60%, and premium subscribers grew some 11% year over year to 263 million.
Despite multiple rounds of price hikes, the latest of which saw the cost of Spotify Premium rise to $11.99 a month, the company is succeeding in keeping users locked in, with churn rates staying low and the tally of free listeners continuing to tick up. It seems that an emphasis on product features is working to make the service more appealing to audiophiles: the report outlined that Spotify’s last year was its biggest ever, reaching 184 global markets and driving user engagement up 10% year over year.
Fine tune
Spotify was keen to tell everyone that it forked out over a record $10 billion to the music industry in 2024. Amped-up user numbers contributed to first full-year profit in Spotify’s history which reported that quarterly operating income rose to €477 million ($485 million) — a U-turn from the prior year’s €42 million loss — bumping net income to a total of €1.14 billion ($1.2 billion) for 2024. Beyond listening power, the “efficiency strategy” championed by founder and CEO Daniel Ek is also paying off: in Q4, gross profit margins climbed to a record 32.2%, free cash flow generation reached an all-time high of €877 million, and operating expenses declined 16% year on year.
America’s Obsession with Iced Coffee—Even in Winter
Over the past decade, cold coffee has surged in popularity, with U.S. consumer spending on iced coffee, cold brew, and frozen drinks more than doubling between 2016 and 2023. Major coffee chains like Starbucks and Dunkin’ have fueled this trend, with Starbucks’ cold beverage sales jumping from less than 40% in 2013 to 75% in 2021. Social media aesthetics, the rise of energy drinks, and America’s long-standing love for soft drinks have all contributed to making iced coffee a year-round favorite, especially among Gen Z and Millennials. Unlike older generations who view iced coffee as a summer indulgence, younger consumers see it as an all-day staple, favoring customization, portability, and Instagram-worthy visuals.
Despite its meteoric rise, hot coffee still reigns supreme. However, coffee brands are betting big on the cold coffee trend, introducing innovations like ready-to-drink cans, flash-chill brewers, and nitrogen-infused cold brews. As consumer habits evolve and more restaurants embrace cold coffee, experts predict its market share will continue to grow. But will it ever dethrone hot coffee as the go-to morning ritual? The answer may lie in how much further American coffee culture is willing to push boundaries.
Amazon, Microsoft Say They Can’t Keep Up With AI Demand
The surge in demand for artificial intelligence (AI) has led tech giants like Amazon and Microsoft to significantly increase their investments in AI infrastructure. Amazon plans to allocate over $100 billion in capital expenditures for 2025, primarily focusing on AI capabilities within its Amazon Web Services (AWS) division. Amazon is experiencing unprecedented demand for its AI services, with CEO Andy Jassy noting that the growth rate of their generative AI business is 3X faster than that of their early cloud computing ventures.
Similarly, Microsoft is expanding its AI infrastructure to meet escalating demand. The company has observed that the appetite for AI services is outpacing current data center capacities, prompting substantial investments to enhance their AI offerings. This trend is not isolated; other tech leaders like Alphabet and Meta are also committing significant resources to AI development, collectively planning to spend at least $215 billion in 2025—a 45% increase from the previous year. That’s almost $400 billion is AI infrastructure spend just in 2025 itself by these 4 big tech cos!