Spotify revealed that 2 million free users, 1.3 % of its total user base, have been dodging ads through unauthorized apps.
As a result, Spotify reduced its monthly active user count of 2017 from 159 million to 157 million to account for the fraudulent users.
The company disclosed this information prior to its scheduled April 3 public offering.
Spotify has restated key usage metrics for 2017 leading up to its IPO next month, claiming it recently discovered 2 million users had been accessing the free version of the streaming-music service using unauthorized apps that blocked ads.
“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 company said in an amended F-1 filing Friday with the SEC.
Spotify made the disclosure ahead of its planned April 3 public offering on the New York Stock Exchange, in a nontraditional direct-listing IPO. The 2 million fraudulent users represented 1.3% of its previously reported total user base.
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