It’s been an enormous week for Spotify as reviews emerged that the music-streaming behemoth has confidentially filed IPO paperwork forward of a deliberate direct inventory alternate itemizing within the first half of 2018.
While Spotify hasn’t commented on the reviews — which means that they’re more than likely correct — the corporate did piggyback on the information final evening when it revealed that it now has 70 million paying subscribers.
Hello 70 million subscribers
— Spotify (@Spotify) January 4, 2018
This means Spotify is sustaining a constant path to subscription progress.
By means of instance, the corporate claimed 60 million subscribers on the finish of July, which roughly equates to 17 p.c progress in paid members over the previous 5 months. Prior to that, Spotify introduced 50 million paying members in the beginning of March, that means its paid member base grew 20 p.c within the 5 months from March by way of the tip of July.
Looking even additional again, in mid-September 2016 Spotify revealed that it had 40 million paying members, which suggests it took Spotify just a little greater than 5 months to hit its milestone marker, one which represented a 25 p.c improve. And in March 2016, Spotify introduced 30 million paying members, having taken six months to hit its milestone in September, for a 33 p.c rise.
As you may see, Spotify’s progress as a share is slowing, however that’s to be anticipated, provided that the general variety of paying members has gone up. But the important thing figure is the precise variety of customers gained, which is rising at a continuing charge of round 10 million new paid customers each 5-6 months.
By distinction, Apple Music claimed 20 million subscribers in December 2016 and 6 months later had gained simply seven million. However, three months after that, Apple revealed it now had “nicely over 30 million paying subscribers.”
It’s tough to match the 2 companies since we don’t have full and up to date numbers for Apple, however suffice it to say Spotify seemingly has round twice as many paying subscribers as Apple.
Of course, Spotify’s service differs from Apple’s insofar as Spotify nonetheless presents a free tier — Spotify claims greater than 140 million customers general. Spotify CEO and cofounder Daniel Ek is adamant that the ad-supported incarnation has allowed the corporate to lure new customers on board and “persuade” them to remain and pay. In an interview with Ek again in 2015, he mentioned that round 80 p.c of Spotify subscribers start as free customers, and on the floor it appears the technique is paying off.
This article sources info from VentureBeat