Spotify hits 195 million paid subscribers

Spotify now has 195 million paying subscribers, the company announced on Tuesday, an increase of 7 million since last quarter, surpassing guidance by 1 million net adds. The company expects to cross the 200 million mark by the end of the year.

Even with that bright subscription news, Wall Street was not thrilled with the results. The stock is down more than 6 percent in after-hours trading. Spotify’s gross profit margin was 24.7 percent, two points lower than during the same quarter last year and below the company’s prior guidance. The company said this was because of an “unfavorable adjustment to prior period estimates for rights holder liabilities,” which could refer to a recent decision by the Copyright Review Board that streamers...

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