Spotify Claims One Million Subscribers
March 8, 2011 at 3:52 PM (PT)
Music cloud subscription service SPOTIFY AB announced that it has reached the milestone of one million paying subscribers across EUROPE, reports the WALL STREET JOURNAL. Available only in EUROPE, SPOTIFY provides unlimited streaming of over 10 million songs from major and independent record labels into computers and mobile phones.
SPOTIFY actually offers two services -- a free, ad-supported service and the ad-free subscription service. SPOTIFY's website claims it now has 10 million users, which means subscribers comprise just 10% of its audience. However, company spokespeople are insisting that the user audience is around seven million, which would raise the subscription piece of the pie to 15%,
PAIDCONTENT.ORG argues that SPOTIFY's growth "is likely aimed at portraying itself as more popular than NORTH AMERICA-only RHAPSODY, as it moves closer to a launch in RHAPSODY’s backyard."
Apparently, the service hopes that those numbers will be enough to get licensing deals from all of the American label groups for their content. So far, SPOTIFY has been able to strike a deal with EMI and SONY to offer their songs in the U.S. -- but not the UNIVERSAL MUSIC GROUP -- at least not yet.
SPOTIFY "looks to win its final major-label deals before U.S. launch, PAIDCONTENT.ORG reports. "It suggests SPOTIFY can sign more subscribers than RHAPSODY despite (or, probably because of its majority-free model). But a pissing contest doesn’t necessarily help win contracts. And RHAPSODY has built its paid-up base without the lure of a free taster like SPOTIFY’s."