Spotify has revealed that around two million users had been accessing the streaming-music service for free using unauthorized apps that blocked ads as it prepares to go public next month.
In its F-1 filing with the Securities and Exchange Commission (EC) on 23 March, Spotify wrote: "On March 21, 2018, we detected instances of approximately two million users as of December 31, 2017, who have been suppressing advertisements without payment.”
The incident forced Spotify to reduce its monthly active user count from 159 million to 157 million total in 2017.
Spotify further highlighted that it currently did not have the data to adjust previously provided key performance indicators due to which certain metrics may be overstated in its prospectus.
Spotify recently announced it would be rolling out its self-serve ad platform to marketers in the UK and Canada after a seemingly successful launch in the US last year.