As Spotify, an online music streaming site, prepares to launch in the United States, the organisation revealed that subscribers across Europe have surpassed the 1 million mark. This is a remarkable achievement considering the fact that the Website has a total of around 6.67 million users, the majority of whom use its free service which are subsidised by advertisements. According to an official statement the company said “its with a sense of real pride and excitement that we can announce a new milestone today, having welcomed our millionth paying subscriber to the service.”
The news is even more remarkable considering that there were quite a few doubters out there when Spotify decided to improve its profitability by offering users the opportunity to switch to premium advert-free computer- and smartphone- based services. Only last year, Spotify’s subscriber base was estimated to be around 8% of its total user base (this figure has now risen to around 15%). Whilst the company’s American launch has been delayed due to concerns at the big music labels concerning the potential success of its business model, which pays out royalties each time a song is played through its Website, its pre-launch fund-raising process appears to be coming to an end now. For an organisation estimated by analysts to be worth around 1 billion dollars, its future, particularly with an optional upgraded subscriber service, seems bright.