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Spotify hits 40 million active monthly users, 10 million pay

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Spotify

Spotify is certainly the best-known name in music streaming, and easily one of the best designed services too, so it's hardly surprising it's doing rather well.

The service now operates in 56 countries and apparently users are generating 5 million playlists per day, which adds up to 1.5 billion since the service launched in 2008.

In other fascinating statistics, Spotify revealed that 70 per cent of the people who subscribed at launch are still paying customers. That's significant brand loyalty there, and a churn rate that most companies would envy.

Also interesting is that peak time on the service, when most people stream, is Thursday afternoon between 4-5pm. The company also revealed that Eminem is the most popular artist by plays on the service, and that relative newcomer Avicii's Wake Me Up is the most played song since it launched. In total, the dance hit has been played 235 million times.

Katy Perry is Spotify's most popular female artist and David Guetta has the most followers, 5 million in total.

It's good for artists too, apparently, because it has paid over $1 billion to musicians in the five years it has been going. Daniel Ek, the company's CEO said "We’re widening our lead in the digital music space and will continue to focus on getting everyone in the world to listen to more music".

Read more: Band that earnt $20,000 from an album of silence have been asked by Spotify to remove it

Pbryanw

May 21, 2014, 9:42 pm

Interesting that it has 10 million paying customers yet it still hasn't turned a profit. Is there something wrong with Spotify's model, or is the streaming music model broken?

PGrGr

May 22, 2014, 9:00 am

Not really.

There's nowhere near enough publically available information to cast any judgement either way. They have obviously invested heavily into their infrastructure. I'm sure all those deals with the labels cost a lot too. A lot of tech companies don't turn a profit for years.

If I were in Daniel Ek's shoes, I would be doing exactly what he is doing: utilising the fact that they were first in, and focusing on market share. Profit will come later, once they've seen off the competition!

Also, don't get sucked in by the numbers. 10 million paying customers sounds like a lot, but what's the worldwide music buying population? In those terms, 10 million is nothing.

Pbryanw

May 23, 2014, 9:00 am

Thanks for the detailed reply - now it makes more sense.

Roel

May 23, 2014, 9:31 am

wait for the ubiquity of google glass when people will watch vevo videos and will stop listening to mere audio files

Liam Blackman

May 27, 2014, 9:14 pm

Nice explanation @PGrGr :)

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