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Spotify Denies High Churn Rate

Spotify new rectangleFollowing our recent report that Spotify was exeperiencing higher churn rates  - paid users not renewing their subscriptions -  as high as 16% in the US, Spotify has strongly denied the claim made in an analysis by Consumer Intelligence Research Partners.

"Churn rates in the U.S. are below 4%," said CEO Daniel EK in an earnings call on Thursday morning.  Churn rates are also down globally, according to Spotify.

Ek's statements counter the analysis from CIRP.  "The monthly payment plan does allow Premium subscribers to cancel at any time, a situation that Spotify calls ‘churn’. We estimate a US churn rate of 16% for the quarter, higher than what Spotify suggests is the global rate" said  CIRP co-founder Mike Levin. "Again, we attribute this to a competitive US market, with many choices for paid and free streaming music services.”

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