Spotify’s Bold New Transition from Streaming Music Service to Music Platform

From Music Industry Blog:

As expected Spotify has managed to hit the 5 million paying subscriber mark which is a fantastic achievement, as is the 1 million US paying subs also announced. That translates to 1 million new paying subscribers in just 3 months. Back in May I predicted that Spotify would hit 8 million paying subscriber in May 2013. It looks like that prediction is going to be in the right ball park. Spotify’s official active user count is now 20 million, which interestingly is much closer to the Facebook reported 24 million – those numbers have been very far apart for the last 9 months or so. Which indicates that Spotify’s marketing funnel has got bigger as its profile in the US has grown. i.e. more people are trying out the free service.

Spotify also announced it has paid out $500 million to rights owners, which is impressive, but to keep a sense of perspective is about 2% of all digital music service money paid to record labels globally since 2009 when Spotify burst onto the scene.

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