Spotify Announces 75M Active Users, Raises $526M Following Apple Music Debut

[MacRumors]

Spotify today announced that it now has more than 75 million active users and 20 million paid subscribers worldwide as the Sweden-based streaming music service prepares to compete with Apple Music, available June 30 on iPhone, iPad, iPod touch, Mac and PC.

Spotify doubled the 10 million paid subscribers it had through May 2014 in just one year, and has now paid over $3 billion in royalties to artists, songwriters and rights holders, including more than $300 million in the first three months of 2015 alone.

The Wall Street Journal reports that Spotify has also raised $526 million in a funding round that values the company at $8.53 billion, giving it significantly more financial backing to take on Apple Music and other rivals in the increasingly competitive streaming music market. Spotify will reportedly invest the capital raised from investors in expansion and new forms of content to further differentiate itself.

Apple Music and Spotify Premium both cost $9.99 per month (Image: WSJ)​

Spotify operates at a loss due to significant royalties and revenue sharing with music label partners, although the company aims to become profitable through continued subscriber growth. The company announced plans last month to add video programming and podcasts from partners such as ABC, BBC, ESPN, NBC, Comedy Central, Conde Nast, Maker Studios, Turner Broadcasting and Vice Media.

Apple Music was announced earlier this week as a streaming music service, live global radio station and social platform for artists to connect with fans. The subscription-based service costs $9.99 per month with a three-month free trial for iPhone, iPad, iPod touch, Mac and PC. Apple TV and Android versions of the service will be available in the fall. Apple Music launches June 30 on iOS 8.4 and iTunes.

Article Link: Spotify Announces 75M Active Users, Raises $526M Following Apple Music Debut

 

[EvilEvil]

Competition is good.

 

[wesk702]

Wish Apple Music had a student subscription like Spotify.

 

[jsmith189]

Transparent timing is transparent.

 

[HobeSoundDarryl]

Sounds like Netscape PR soon after Microsoft decided to compete by embedding IE in the Windows OS. Embedded & free with every device is a very challenging competitor.

 

[LuisEnriqueEC]

Spotify cost 4.99 in my country, and 2.99$ next family member. My wife and I pays 8.98 for both premium accounts.

 

[Godzilla71]

Spotify worried or something? Look at us! Look at us and our numbers! With that said It will be fun to test run Apple's offering for the 3 month trial period.

 

[thekeyring]

Apple Music is interesting enough a product that I'm going to sign up on day 1 for a trial and see how things go from there.

It doesn't bode well that Spotify still isn't profitable despite currently being the industry leader.

 

[Brucewaynnee]

Being able to use Siri to choose a song while I'm driving plus this FREE 3 month subscription may just make me convert from Spotify.

 

[kcirtap00]

Spotify has been operating at a loss and they expect to be profitable now that Apple has entered the game? I give them a year

 

[TXCherokee]

Being able to use Siri to choose a song while I'm driving plus this FREE 3 month subscription may just make me convert from Spotify.

This. Plus being able to load my playlists onto my Apple Watch for workouts will likely entice me to switch from Spotify (which I like a lot).

 

[harry*333]

Spotify operates at a loss due to significant royalties and revenue sharing with music label partners, although the company aims to become profitable through continued subscriber growth.

If this is their situation, then I don't see an extremely bright future for Spotify

 

[Dekema2]

They have a loyal customer in me. I would be foolish to relinquish my $4.99 student discount to move up and pay $9.99/mo.

 

[Godzilla71]

Spotify has been operating at a loss and they expect to be profitable now that Apple has entered the game? I give them a year

Interesting, I never knew that.

 

[Mildredop]

How has Apple got 7 million more tracks than any other music service?

 

[Mike MA]

Wish Apple Music had a student subscription like Spotify.

Well, time when being a student is limited. You should start taking this into consideration But for sure this was one of the restrictions dictated by the music labels.

 

[auero]

Wish Apple Music had a student subscription like Spotify.

That's what's going to stop me from subscribing. Can't beat $4.99.

 

[Razeus]

Too bad Spotify's mobile UI is a nightmare. Tap, tap, tap, back, back, back, tap, tap, tap.

 

[HeyLammy]

Interesting that Spotify has 75M users total. Apple are targeting 100M, I wonder if or when they will achieve this?

 

[Gasu E.]

Well, time when being a student is limited. .

True for most people; perhaps not for him?

 

[bunnicula]

How has Apple got 7 million more tracks than any other music service?

They know how to make deals.

 

[Nozuka]

Alot of free Users on Spotify. I wonder how long it will take until the Music Giants will decide that free is no longer an option and force Spotify to remove it

 

[co.ag.2005]

This. Plus being able to load my playlists onto my Apple Watch for workouts will likely entice me to switch from Spotify (which I like a lot).

Good point. I currently use Spotify Premium but it would be nice to have the tie ins with Siri and Apple Watch playlists, etc. Now if Siri is actually better in iOS 9, that remains to be seen... I can't stand her "functionality" now.

 

[6836838]

The fact that Spotify is effectively 'Dark Mode' on iOS is enough for me to stay on the platform!

 

[gorkt]

I really had no desire to switch from Spotify. I pay for me and another family member at $14.99 a month and enjoy it, but I am very interested in the 3 month trial. My one pet peeve with spotify is that the app is a pain to navigate through. Too many windows and stuff. Plus there is some stuff we can't access. The family pricing is attractive also. When my kids get into music, it will be nice to have them be able to join for no extra cost.