Spotify has reversed its decision to charge for access to song lyrics, a feature that was tested behind its Premium subscription paywall. Initially free, the lyric feature was limited in September to just three uses per month for non-paying users.
That change that was expanded in May, sparking user discontent. A Spotify spokesperson announced that the service will again make lyrics available to all users globally in the coming weeks.
Despite frustrations about the streamer, Spotify’s Q2 2024 financial results surpassed expectations with the addition of seven million new paid subscribers, bringing its total to 246 million—a 12% increase from the previous year. This growth occurred despite a second subscription price increase within the year, attributed to audiobook growth. The Swedish company achieved an operating profit of €266 million ($289 million), a noteworthy recovery from a €247 million loss in the same quarter last year.
The increase in profitability is attributed to reduced marketing and personnel expenses, following a 17% reduction in staff last year, particularly in podcasting.
Spotify further streamlined its operations by cutting 40 jobs in the past month, focusing more on programmatic advertising aimed at small- and medium-sized businesses. This latest workforce reduction represents about 0.5% of its total staff and 2.7% of its ad sales team.
