Spotify Soars on Bourses Whilst YouTube Music Mounts a Comeback in User Preference

The business of music streaming is witnessing a fascinating divergence between market performance and user sentiment. On the financial front, Spotify has delivered a stellar performance that has left analysts and investors thoroughly impressed. In its latest quarterly disclosure, the Swedish audio giant reported a revenue uptick of 7 per cent year-on-year, clocking in at 4.5 billion euros. Even more significant was the operating profit, which saw a massive surge of nearly 50 per cent to reach 701 million euros.

The user base has continued its upward trajectory as well. The count of monthly active users expanded by 11 per cent to 751 million—a figure that comfortably surpassed market expectations. Looking ahead to the current first quarter, the company projects this number to touch 759 million. This optimism, coupled with a targeted operating profit of 660 million euros, sent the company’s stock soaring in New York. In pre-market trading, the scrip witnessed a double-digit jump, rising over 10 per cent to 456.50 dollars at one point.

Interestingly, the internal dynamics of this revenue growth reveal a shifting landscape. Whilst ad revenue from free users dipped by 4 per cent, the earnings from the significantly larger subscriber base grew by 8 per cent. Furthermore, operating costs were trimmed by 10 per cent, largely due to reduced social charges resulting from a lower share price used for employee compensation. Consequently, the bottom line looked exceptionally healthy; Spotify earned nearly 1.2 billion euros, a figure almost thrice that of the previous year, bolstered by strong operating profits and a favourable financial result.

A Challenge from the Underdog

Despite Spotify’s dominance on the balance sheet, the user experience narrative is becoming increasingly contested. A few weeks ago, I initiated an open discussion asking readers why they might prefer YouTube Music over the market leader, Spotify, which has long been my service of choice. The response was overwhelming. With nearly 400 replies and a decisive victory for Google’s service in the accompanying poll, it became evident that the community held strong views that challenged my own. Driven by this feedback, I decided to re-evaluate my stance and signed up for YouTube Music once again to understand the ground reality.

Revisiting a Formerly Flawed Experience

My history with Google’s audio offerings has been complicated. For years, I was a loyal patron of Google Play Music and often defended it against detractors. However, its discontinuation in 2021 left me disillusioned. The early iteration of YouTube Music felt unintuitive, leaning far too heavily on its video-hosting parentage. It frequently pushed video content when I desired an audio-first experience, was heavily skewed by my YouTube browsing habits, and was astonishingly sluggish in operation. It was, to put it bluntly, a subpar experience that drove me straight to the “Green Team,” Spotify.

Since then, I have been quite comfortable in the Spotify ecosystem. The Duo plan has been practical for my partner and me, allowing for separate yet collaborative playlists via Spotify Jam. The recommendation algorithms and the ease of discovering new artists fit perfectly into my daily routine.

A Surprisingly Refined Return

However, returning to YouTube Music earlier this month was a revelation. The app has undergone a significant transformation. I was immediately greeted by a wave of nostalgia as I rediscovered treasured playlists I thought were lost forever—from “Turbulence,” a pop-heavy mix for flight anxiety, to “Sunny Days,” a curated list that evokes the feeling of a cool summer morning.

From a functional perspective, the interface is now much tighter and cleaner. The UI prioritises libraries I have built and albums I tend to pick first. This creates a distinct feeling of comfort and purpose. In contrast, Spotify often feels like it is on a constant mission to push new songs, genres, and albums, laying out its cards somewhat chaotically across the home screen. While I cannot say I prefer one layout definitively over the other, Google’s offering certainly makes better use of screen space and feels less scattered.

The Content Advantage

Perhaps the most compelling argument for YouTube Music, however, lies in its catalogue depth. I quickly realised why so many users, particularly those with a taste for “deep cuts,” gravitate towards this service. Tracks that are simply absent on Spotify are readily available here, often sourced from YouTube’s vast video archives.

I managed to locate several long-lost EDM remixes from the 2011-2012 era, such as Vicetone’s remix of Zedd’s “Clarity,” which I had been missing for years. This integration gives YouTube Music a massive advantage in content discovery. Furthermore, the ability for users to upload their own content—even if the website upload process is a bit of a chore—makes the service incredibly valuable for those wanting to carry a bespoke music collection. While Spotify may be winning the financial war, Google is quietly winning over the purists.