15 Million of Spotify’s 60 Million Userbase Now Pay

Spotify announced on Monday that it now boasts 15 million paying subscriptions, with a grand total of 60 million users. That marks a 10 million growth in its userbase since November, when it was revealed that 50 million people used the music streaming service. For comparison, the previous 10 million user growth took six months.

Daniel Ek, co-founder of Spotify, said back in November: “Not all free music is created equal – on Spotify, free music is supported by ads, and we pay for every play. Until we launched Spotify, there were two economic models for streaming services: all free or all paid, never together, and both models had a fatal flaw. The paid-only services never took off (despite spending hundreds of millions of dollars on marketing), because users were being asked to pay for something that they were already getting for free on piracy sites.”

Spotify has demonstrated remarkable growth in the latter half of 2014, with 25% of its userbase now paying to stream music, and the company is rumoured to be in line for an initial public offering (IPO) soon, making shares available to the general public.

Source: Music Business Worldwide