Music streamer Spotify hits 100 million users with 30 million paying for service

Streaming music provider Spotify announced today that it has 100 million subscribers. That is up 33% from the previous count of 75 million. Even with the competition from Apple Music, Spotify has been able to increase its head count. 30 million subscribers are paying $9.99 a month for the premium version of Spotify. The vast majority of listeners are subscribed to the free tier, which is supported by paid advertising.
Because 80% of all money coming into Spotify gets paid out as royalties to artists, labels and producers, the company has yet to earn a profit since its launch in 2006. Last year it reported an operating loss of $209 million, up from the $186.8 million operating loss it reported in 2014. As if Spotify needs more competition, Amazon recently announced that it will start a similar music streaming service that will be priced competitively.
source: Reuters (via Venture Beat)
At last count back in April, Apple Music reported that it had 13 million subscribers. Unlike Spotify, Apple does not offer a free tier of service backed by ads. Instead, Apple gives first time users a free three month trial before they have to start paying for a subscription. A month of Apple Music is $9.99 ($4.99 for students). Families with up to six members can sign up for $14.99.
Because 80% of all money coming into Spotify gets paid out as royalties to artists, labels and producers, the company has yet to earn a profit since its launch in 2006. Last year it reported an operating loss of $209 million, up from the $186.8 million operating loss it reported in 2014. As if Spotify needs more competition, Amazon recently announced that it will start a similar music streaming service that will be priced competitively.
source: Reuters (via Venture Beat)
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