Arab Today, arab today spotify rockets to 15m paying users
Last Updated : GMT 14:17:38
Arab Today, arab today
Arab Today, arab today

Spotify rockets to 15m paying users

Arab Today, arab today

Arab Today, arab today Spotify rockets to 15m paying users

Swedish music streaming service Spotify
Stockholm - AFP

Swedish music streaming service Spotify said it now has 15 million paying subscribers in what analysts on Tuesday called a timely boost to the company's revolutionary and controversial model.
The expanding startup revealed late Monday it had added 2.5 million subscribers since November amid widespread reports that the unlisted company plans to go public.
"It's been an astronomic amount of growth in a short period of time," Mark Mulligan, a music industry analyst, told AFP.
He said various discount packages explained the surge, adding that the company will struggle to keep a majority of the new subscribers.
"They won't retain them all, but they will have more subscribers at the end than if they had not done the pricing (deals)," Mulligan said.
At the end of 2014, Spotify said it had 60 million users of whom 15 million were paying subscribers, compared to 40 million active users and 10 million subscribers in May.
The streaming service has become a major powerbroker in the music industry since its US launch in 2011, drawing criticism from stars like American pop star Taylor Swift and propelling lesser-known artists into the spotlight.
Spotify has pioneered a two-tier service -- called "freemium" by the music industry -- that lets users stream an extensive catalogue for free with advertising, while subscribers pay eight to 11 euros (nine to 12 dollars) a month for ad-free music listening.
Mobile and smartphone users, however, do not have a free option.
Spotify's surge in subscribers is timely according to Mulligan.
"At the moment, all the (recording) labels are having a big reassessment of what role freemium should play. Spotify's contract is in the renewal stage, so it did everything it could to get the right growth at the right time," he said.
Spotify declined to make any media comments on Monday's figures.
- Snubbed by Swift, ACDC -
Although the company says 70 percent of its revenue goes to the music industry, it has come under fire for the share that ends up in artists' pockets.
Radiohead frontman Thom Yorke has said Spotify is part of a "last gasp of the old industry," while stars ranging from ACDC to US country music giant Garth Brooks have snubbed the streaming provider.
In November, Taylor Swift pulled her catalogue from the service, citing low compensation.
"It's not something (artist payments) Spotify can directly influence, but they get the blame," Mulligan said. "Most of it lies with the rights holders, who have a big responsibility to be more transparent."
Spotify founder Daniel Ek replied to Swift's criticism on the company's blog, saying that his company provides an alternative to listeners downloading music online for free.
Monday's figures confirm previous reports that one in four Spotify users is a paying subscriber -- although the company reported $80 million (68 million euros) in losses in 2013.
There has been widespread speculation that the streaming provider is preparing to go public even though the company has yet to turn an overall profit.
"They wouldn't be the first loss-making music service to go public," music startup consultant Bas Grasmayer told AFP in an email, referring to US Internet radio service Pandora which went public in 2011.
With Google's YouTube Music Key on the market since November and Apple making no secret of its music plans, strong competitors are emerging for the Swedish startup.
"May last year might have been the perfect time (to go public), when they hit 10 million subscribers. They had the market largely to themselves," Mulligan said.
"Spotify already have challenged economics, can they compete with Google and Apple? That's what potential investors will ask themselves."

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today spotify rockets to 15m paying users Arab Today, arab today spotify rockets to 15m paying users

 



Arab Today, arab today
Arab Today, arab today Rabia Fatima reveals role of "Facebook" in her career

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 06:25 2017 Thursday ,23 February

Bupa Arabia sponsors SMEA forum

GMT 06:11 2017 Thursday ,23 February

Football: Turkish company wins Qatar World Cup contract

GMT 05:46 2017 Thursday ,23 February

SABIC net profits fall in 2016

GMT 21:01 2017 Wednesday ,22 February

Saudi Aramco mulls offering citizens discounted shares

GMT 16:50 2017 Wednesday ,22 February

Yahoo salvages Verizon deal
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday