The streaming giant Spotify has amassed over 60 million paying subscribers. They also achieved 10 million subscribers in less than five months. This was announced by spokeswoman for the music streaming giant last Monday.
Last March, Spotify reported that it had already 50 million paying subscribers. The company that started in 2008 is available in 60 countries. This 25 percent rise in merely less than six months is quite astounding, making Spotify’s lead over its closest rival Apple Music even further which has roughly around 27 million subscribers. This is about half of what Spotify has making it the reigning king in music streaming services.
Reuters reported last week that Spotify was close to agreeing to license a new pact with Warner Music Inc. This would be the last music royalty deal Spotify needs before it pushes ahead with a U.S. stock market listing.
Spotify has also been accused of inserting “fake artists” into their playlists and have been experimenting allowing record labels to promote their music by inserting songs into the user’s playlist deeming it as “sponsored content”. Despite these controversies, it doesn’t seem to hinder the streaming giant’s massive success worldwide.
Last June, the Swedish company said that it had a total of 100 million users which includes its free, advertising backed tier.
Spotify is a privately held company however its executives are considering bringing the company public. A lot of music streaming services has mainly remained unprofitable.
Issues that face Spotify are usually from its ad-supported free tier in which the company operates at a loss with its main goal only to lure in paid subscribers. Investors of Spotify hope that once the company goes public, it can be transformed into a profitable service when they adjust their free tier.
They have maintained an edge despite critics being concerned of Spotify’s competitors. Apple whose music streaming service was launched last 2015 and Jay-Z’s controversial Tidal have both tried to get subscribers by teasing them with exclusive content in which the latter, Jay-Z, even going as far as to pull most of his music from the current king of music streaming, Spotify.
Amazon also entered the industry by offering its own deals with the audience. Amazon gave discount rates to subscribers who also use Amazon’s speakers.
Streaming music online has only grown popular in the recent years and will continue to grow in the following years. More and more companies will want a cut of that gold and Spotify will have to be wary of this but with 60 million paying subscribers and its closest competitor has barely half of what they have, Spotify can rest easy for now.