Spotify Hits Milestone With 10 million Paid Users
LA Times reports:
The streaming service Spotify has gone 10-times-platinum in paid users.
The Swedish firm says it has hit the significant milestone of 10 million paying Premium members. That figure is part of 40 million total active users worldwide.
Those 10 million customers pay an average of $120 per year to the service for unlimited, ad-free music streaming, which adds up to $1.2 billion in subscription revenue a year.
That figure doesn’t include any ad revenue from placements on its free service, or corporate partnership deals like its pairings with HTC and Sprint cellphones.
The private company spends the vast majority of that on licensing payments, however, and has yet to turn significant profit. Businessweek cites a report estimating the company has lost $200 million since its founding.
The streaming-music sphere has also gotten more complicated with Apple’s rumored $3.2-billion purchase of the headphone company and streaming service Beats.
The pairing of the world’s largest music retailer with the popular headphone company and its Dr. Dre- and Jimmy Iovine-backed streaming service has the potential to be a significant threat to Spotify’s now-dominant position.