Spotify Hits 60 Million Paid Subscribers Ahead of Going Public

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Jul 31, 2017.

  1. MacRumors macrumors bot

    MacRumors

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    As it prepares to go public, Spotify has reached 60 million paid subscribers, reports TechCrunch. The 60 million mark comes nearly five months after the company announced its 50 million paid subscriber milestone in March.

    When adding in customers who listen to the free ad-supported tier, Spotify has more than 140 million subscribers worldwide. Comparatively, Apple Music now boasts 27 million paying subscribers, a number Apple shared at its Worldwide Developers Conference in June.

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    Since its 2015 debut, Apple Music has been growing steadily by luring customers with exclusive album releases, concerts, and original television programming, but it does not offer a free tier like Spotify. Apple Music subscriptions start at $9.99 per month after a three-month free trial.

    Spotify paid subscriptions are also priced at $9.99 per month, and in 2016, Spotify's revenue grew over 50 percent to $3.3 billion.

    In the near future, Spotify plans to go public through a direct listing, forgoing the traditional initial public offering and making existing Spotify shares available to the public. With this method, likened to an elopement instead of a full-on wedding, Spotify avoids the fanfare of an IPO and does not have to hire an underwriter. Spotify is expected to initiate its direct listing in 2018.

    Article Link: Spotify Hits 60 Million Paid Subscribers Ahead of Going Public
     
  2. Avieshek Suspended

    Avieshek

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    And it's yet to come to countries like India. I wonder why.
     
  3. Asarien macrumors 6502

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    Great for them. Us Apple fanboys need Spotify as competition more than ever with Eddy Cue still at large.
     
  4. WRChris macrumors 6502a

    WRChris

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    In 2 years Apple has half the users? I'd be pretty worried if I was Spotify...I don't think podcasts are going to help much either.
     
  5. ovo6 macrumors 6502a

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    theres no way those 60 millions paid subs still use it
     
  6. big-ted macrumors regular

    big-ted

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    I'm not sure that Apple adding those great quality TV shows is a decidier when choosing to subscribe to either AM or Spotify
     
  7. OldSchoolMacGuy macrumors 68040

    OldSchoolMacGuy

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    This is generally because of the record companies. They only allow their music to be distributed to certain countries depending on the agreement.

    Don't you think Spotify and others would open themselves up to making more money by adding additional countries if they could? "Nah, we've got enough money. Let's limit our service and not make any more cash.
     
  8. lec0rsaire macrumors 6502a

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    Spotify is a great service but I like to keep things old school. Too much choice and I spend more time browsing and browsing instead of listening. I also like to own music both on CD and on my hard drives. I don't like the idea of perpetually paying for services with the exception of Netflix which is a bargain with their original content, foreign movies and shows and great library of classic movies and tv shows.
     
  9. Warddijk macrumors newbie

    Warddijk

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    Do they count in the ‘3 months for .99 cents’ subscribers as paid subscribers?
     
  10. lec0rsaire macrumors 6502a

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    It also depends on the habits of the people. Maybe Indians are not so keen to pay for this kind of service. India has a huge wealth gap and paying nearly 8,000 rupees a year for music is not affordable for everyone.
     
  11. Zirel Suspended

    Zirel

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    Of course, where do you think the "60 million" numbers come from?

    It's premium, and it's paid...
     
  12. Bacillus macrumors 68000

    Bacillus

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    I like them, and this will leverage their financial position, but also require them to report more openly.
    Plus: massive pressure to get to earn money.
    Expect some serious changes - just like Whatsapp.
     
  13. applesith macrumors 68030

    applesith

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    Who is going to invest in this company that continues to lose money selling and giving away a commodity like music? Anyone have a link to a resource that shows when they expect to be profitable? They seem to get more free users way faster than paid. How does that ever make them profitable?
     
  14. Michael Scrip macrumors 601

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    Good question.

    Though haven't other companies with odd business plans gone public?

    I'm not saying it's gonna work out for them...
     
  15. Glideslope macrumors 603

    Glideslope

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    The IPO will be lackluster at best. 60 Million means little when you mismanage your growth. :apple:
     
  16. DNichter macrumors 603

    DNichter

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    I somewhat question that 60M number, but I think it's great for everyone. Competition is a good thing for Apple. At the same time, definitely shows me that Apple is making some major strides by having about half the number of subscribers in only 2 years.
     
  17. The Clark macrumors regular

    The Clark

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    I just got Spotify and it's awesome. Very intuitive interface and such a wide variety of music.
     
  18. DNichter macrumors 603

    DNichter

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    Agreed. I loved it when I had it myself.
     
  19. deany macrumors 68030

    deany

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    I too question the 60M, is that 100% Live customers?
    I subcribed 10 years ago and cancelled, is that part of the 60M? are they are including 'churn'.
     
  20. 69Mustang macrumors 603

    69Mustang

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    No IPO to be offered.
     
  21. DPH macrumors regular

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  22. hotgril Suspended

    hotgril

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    I wonder if I can short sell in that new Robin Hood account I just opened.
     
  23. itsmilo macrumors 68000

    itsmilo

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    I love Spotify so much more than Apple Music which i got 6 months for free through my provider.

    Their playlists are so much better and the categories to choose from actually make sense unlike AM which just seems random and cluttered with way too much scrolling involved.

    Plus i love how you can pick up the music on one device but play it on another remotely and of course they got a browser based version for work too!

    It would be a pity for only Apple to survive. Competition is good. Imagine what Apple would charge if they had their way
     
  24. satchmo macrumors 68000

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    How much does this have to do with the millions of people on Android devices who want nothing to do with Apple and Apple Music?
    Does Spotify become the default or is it simply a better service?
    I have neither so, I have no clue.
     
  25. brunosh macrumors regular

    brunosh

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    I was about to ask this, but it's very likely. Even i subscribed for 3 months for that price, but after that i'll be back to the free tier.
     

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