Spotify is a digital music service that gives you access to millions of songs.
Spotify Just Hit 2.5 Million Paying Users
It hasn’t been a full year since Spotify launched its streaming music service to US users but already Spotify is proving to be a hit—literally!
The company is now reporting that a staggering 2.5 million people are signed up to its service (that is 2.5 million people willing to actually pay for music). This number is surprising to many who felt that in the last few years the ability of record labels etc. have failed to retain loyalty among the music buying public. Spotify is changing that perception and doing so in a rather ‘Facebook.com’ way. The Service has grown rather quickly since Spotify announced full Facebook integration and users now have the capability to interact, stream and share music from their Spotify account directly from Facebook.
Spotify is calling much of the growth a result of the Facebook effect and judging by the numbers growth by country, they may be absolutely spot-on. Another amazing thing about Spotify’s performance has been the rate at which they convert free users to paid users. According to one report, the company is managing to convert at a staggering 12.5%–something many competing services would love to achieve but can’t.
At 2.5 million users, it’s clear Spotify hasn’t reached critical mass; when it does, it should settle down nicely around 10 – 20 million subscribers. And when that happens, Spotify should be able to say comfortably, “we are profitable!”