Friday, 19 August 2011

Spotify has 1.5m paying subscribers

"At the end of June, Spotify had more than 1.5 million paying subscribers for its streaming music service, according to a report prepared for a rightsholder and subsequently seen by Music Ally, which outlines the company’s performance between January and June this year. Spotify did not leak the report to Music Ally, and has declined to comment.
The report clearly identifies a surge in subscriptions after Spotify introduced restrictions on its free service at the start of May, including a 10-hour monthly listening limit and a five-play cap on individual tracks. The changes came at the behest of some of Spotify’s major-label shareholders, who wanted to see an uptick in the company’s conversion rate of free to paid users.
They certainly got that. Music Ally can reveal that between March and June this year, Spotify lost 1.6 million free users, but gained 644,000 520,000 paying subscribers.
Here’s how that breaks down: In March, the company had 4.73 million free users and 1.02 million paying subscribers, with a total active user base of 5.75 million, of whom 17.8% were paying. Then the restrictions were announced in mid-April and implemented on 1 May. By June, the leaked report reveals that Spotify had only 3.13 million free users, but 1.54 million paying subscribers: 32.9% of its 4.67 million active users."

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