Streaming music service grows its paid membership amid increasing competition
Today is a day of celebration for Spotify, the spunky streaming music service that just crossed the 10 million paid subscriber milestone. Including freeloaders, Spotify is home to more than 40 million active users across 56 markets. That's not too shabby for a service that first launched in 2008, and has only been available in the U.S. since late 2011 (first as an invite-only and then to everyone by the end of September).
"We’ve had an amazing year, growing from 20 markets to 56 as people from around the world embrace streaming music. 10 million subscribers is an important milestone for both Spotify and the entire music industry," said Daniel Ek, CEO and Founder, Spotify. "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."
Spotify shared some other interesting statistics, including the fact that Eminem is the most streamed artist of all time. The most streamed song on Spotify, however, is "Wake Me Up" by Avicii.
Since launching in 2008, Spotify users have created over 1.5 billion playlists -- collectively, Spotify users are adding 5 million more each day. What this all translates into is over $1 billion going ro rights holders, Spotify says.
The challenge for Spotify going forward is to make money, and do it at a time when competition is getting fierce. If reports turn out to be true, Apple will end up acquiring Beats Audio, which is home to Beats Music. Citing a financial report by PrivCo, Businessweek says Spotify has lost $200 million since it was founded. Hitting 10 million paid subscribers is a step in the right direction, but it may not be enough.