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

[bushido]

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.

haha only if u r speaking english. i get the most funny suggestions when i tell siri to play english artists like Taylor Swift becomes Täler Schäft

"bitch" really needs to become multilingual like Now

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

just like the music app on iOS 8.4. at least Spotify rememberes my position after i didnt use the app for a few hours unlike the music app which always jumps back to damn "A"

 

[ArtOfWarfare]

Spotify recorded an operating loss of €165.1m (£119m) in 2014 compared to €91.2m (£65.7m) in 2013, while its net loss nearly trebled from €55.9m (£40.3m) in 2013 to €162.3m (£117m) in 2014.
Source: http://www.theguardian.com/technolo...-financial-results-streaming-music-profitable

That's over a year old. They have 7.7 m in profits this year according to Business Insider: http://uk.businessinsider.com/spoti...on-valuation-war-with-apple-music-2015-6?op=1

Not huge, but it is a positive number, so they aren't operating at a loss anymore.

 

[gnasher729]

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

Apple can easily get 500 million users by making it free. Comparing free + paying users to paying users is a pointless comparison. Spotify has 15 million paying users.

 

[AppleZilla]

'Spotify operates at a loss'

Yep. They are about to lose ten bucks a month from me.

I am not alone.

 

[filmantopia]

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

That's just active users. Their paid subscriber count is only 20 million.

 

[davidwes]

N

That's over a year old. They have 7.7 m in profits this year according to Business Insider: http://uk.businessinsider.com/spoti...on-valuation-war-with-apple-music-2015-6?op=1

Not huge, but it is a positive number, so they aren't operating at a loss anymore.

No where in that article does it state spottily is making a profit. In fact it specifically says they are operating at a loss. Where do you see this 7.7. I did a search on the article and the only time 7.7 shows up is when they speak about how much artists are paid.

 

[jplumey]

If Apple can apply parental controls to this, utilizing what they already have built up in iTunes Radio and Family Sharing, I am all-in despite its shortcoming compared to Spotify. Plus the pricing is better for my family.

 

[Thunderhawks]

I wonder if apple music will work with Sonos.

Not until they get an okay from Neil Young and promise him the world!

 

[iSlave]

Transparent timing is transparent.

Irrelevant comment is irrelevant.

 

[iSlave]

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.

No, they're not worried.

 

[Michaelgtrusa]

Spotify to Apple: You want a music war? You've got one http://fortune.com/2015/06/10/spotify-apple-funding/

 

[topmounter]

After Spotify's "we're getting into video" cry for help, I expect Spotify to be acquired by Netflix. The "growing subs to achieve profitability" hasn't worked to date and there aren't any signs that it will work any better going forward.

 

[Kroner]

But will they have a PS4 app? My guess is, Apple won't release this. Spotify has one, and I'm so glad they do! That'll be the one competing factor on whether or not I'll switch.

It might depend on Sony as well. After all Sony did make some noise with Spotify taking over the spot that was previously done by Music Unlimited. Might be some special deal between Sony and Spotify.
Then again I doubt Apple would do it, even if they had permission.

 

[e1me5]

But will they have a PS4 app? My guess is, Apple won't release this. Spotify has one, and I'm so glad they do! That'll be the one competing factor on whether or not I'll switch.

Totally forgot about the PS4 app. That complicates things now!

 

[HobeSoundDarryl]

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

Easily. It will be embedded in iOS9. Try it one time and you'll count toward the 100M number. It doesn't matter if you ever give Apple a nickel as a subscriber, you'll be counted in the 100M tally just for trying it as little as once. I will bet Apple will get their 100M number within hours or days of launch, either of the service itself or with the rollout of iOS9 in the Fall. Embedded software in an OS yields huge adoption over an established player (see IE vs. Netscape).

 

[TWSS37]

Part of me feels we will see the following headlines in the not too distant future:

"Samsung Acquires Spotify for $X Million/Billion"

"Samsung Launches New Music Service 'Samsung Music'"

Why? Or are you implying that Samsung "copies" whatever Apple does, they'll launch their own music service, all the while conveniently forgetting that many other services just like Apple Music have existed long before the end of this month?

 

[HobeSoundDarryl]

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

Music giants are getting paid by the ad model that is a part of "free". The free tier is not a charity.

And faulting Spotify for offering a free* competitor to this new Apple service is coming down on a popular option that doesn't cost fellow consumers a nickel for something pretty comparable. I know we have to support Apple in all things no matter what but wishing away free* so that Apple can be even more profitable seems to be putting Apple above Apple's customers or even ourselves.

When the clash is Apple profitability vs. consumer value or consumer options, it seems like we should "think different" rather than just automatically spinning the latter as bad. I know that is hard-to-impossible for some here but I perceive we are more Apple consumers than Apple profiteers. Maybe this site is full of shareholder first mentalities... even at customer expense???

 

[OllyW]

Not until they get an okay from Neil Young and promise him the world!

I think you've got Sonos and Pono mixed up. Pono is Neil Young's high quality digital music project.

 

[street.cory]

Easily. It will be embedded in iOS9. Try it one time and you'll count toward the 100M number. It doesn't matter if you ever give Apple a nickel as a subscriber, you'll be counted in the 100M tally just for trying it as little as once. I will bet Apple will get their 100M number within hours or days of launch, either of the service itself or with the rollout of iOS9 in the Fall. Embedded software in an OS yields huge adoption over an established player (see IE vs. Netscape).

It'll actually be included with iOS 8.4 prior to 9

 

[TWSS37]

As Google embeds their app, I find it interesting/odd/whatever that the amount of users would be unknown at this time.

 

[attila]

If Apple Music offers the same mood-based playlists by Spotify, the custom radio feature, as well as the custom playlists I made myself, I'm interested. Oh, and for free.

But I don't mind having two apps - one for my own music, and one for streaming.

 

[dumastudetto]

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

Yep. I'm not even sure how growth helps them. They've been growing for years but continue to make significant losses. Costs probably scale with growth so they make very little profit on each subscriber they add. The music industry is brutal and I imagine their deals they signed to get off the ground massively favoured the labels, and have made it practically impossible to build a sustainable business long-term.

Apple spent a hell of a long time negotiating the deals needed to get their streaming service going. I'm sure they have done a hugely better job agreeing terms that ensure they can turn a profit on whatever numbers they hit. Of course Apple is aided by their financial position which ensures labels don't demand massive sweeteners as protection against the risks of going bust. It's much harder for startups like Spotify was when they started out. And because Spotify is still a loss making business, I'm sure negotiations remain tough for them when renewing deals.

 

[happycadaver]

We will see in October, how many people will use Apple Music as a paid service. Before that, everything is speculation and marketing stats by Apple.

 

[HobeSoundDarryl]

After Spotify's "we're getting into video" cry for help, I expect Spotify to be acquired by Netflix. The "growing subs to achieve profitability" hasn't worked to date and there aren't any signs that it will work any better going forward.

The goal of many a web-based business is not necessarily traditional profitability but to grow a big enough following to do a Facebook by going public. Facebook wasn't exactly on a profitable track either but that didn't stop the owners from cashing out in a very lucrative deal. There have been rumors for several years now that Spotify wants to go public. With such a huge following, the owners will probably make a fortune. Before we start digging it's grave, we might want to look up it's valuation in spite of the lack of profitability. Facebook's lack of profitability didn't exactly doom them.

 

[azentropy]

I'm not a music person and maybe spend $10-20 a year on purchasing music. Most of the time in the car I listen to sports games, sports talk, or news. The exception is when taking a road trip.

So Spotify's Ad Based Free option appeals to me. As long as they have that and Apple doesn't provide a free solution I'll stick with Spotify.