Printed from http://www.electronista.com

Spotify tops 3m paying listeners, grows faster

updated 04:40 pm EST, Thu January 26, 2012

Spotify gets momentum at 3m listeners

Spotify has already reached three million paying subscribers, the company's US managing director Ken Parks gave out in a discussion Thursday [free reg. required]. The benchmark number given to the FT was triple the million from a year ago and saw it growing much faster than before, having reached two million in September and 2.5 million in November. The three million now represented a larger 20 percent portion of the base and didn't include those who were just part of free trials.

The increase to Parks was a sign of "pretty great results" in working to convert listeners from the free, ad-sponsored service to either the $5 desktop-only version or $10 for a mobile-friendly Premium plan. He credited it in part to the month-long trials as well as an initially loose approach for listeners on the free service, who get ads but unlimited plays for their first six months and only then face the maximum play counts and other caps on the free service.

Adding more paid users both helps allay label fears that Spotify might be abusing their licensing deals as well as a criticism of poor revenue that has led some distributors and labels to pull out over low revenue. While the income per track is still smaller than at a pay-to-own store like iTunes, Spotify's subscription service provides considerably more to labels and artists than the ad-only model and theoretically makes more sense when considering revenue from repeat plays.

Spotify is often considered the other major force in European music next to iTunes and is already considered successful among the subscription music services in the US, where it only just arrived last year. Its American presence led rivals such as MOG and Rdio to implement free models where before they required a subscription to work at all.



By Electronista Staff
toggle

Comments

  1. global.philosopher

    Fresh-Faced Recruit

    Joined: Sep 2010

    0

    Google take over target...

    but Motorola may have sucked out all of Googles cash reserves utting their aquisition aims on hold.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lacking ...

Sponsor

toggle

Most Commented

 
toggle

Popular News