Spotify has more than 20 million paid subscribers
At 20 million paid subscribers, Spotify doubled their paid subscriptions in just one years time. The Wallstreet Journal says that Spotify is now worth half a billion dollars since May of this year. Given Apple’s recent announcement to offer music streaming along with subscription services, it looks like Spotify will be the player for them to beat in the market. Given that both services will retail for $10/month each, it will be dangerous for both companies as Apple moves into the market. Speculators do say that Apple has an edge considering the fact that they bought Beats recently and can still use that momentum to drive sales forward. They also have 7 million more tracks than Spotify and what you don’t know about Spotify’s corporate practice will completely shock you.
Spotify operates at a loss due to significant royalties and revenue sharing with music label partners, although the company aims to become profitable through continued subscriber growth. The company announced plans last month to add video programming and podcasts from partners such as ABC, BBC, ESPN, NBC, Comedy Central, Conde Nast, Maker Studios, Turner Broadcasting and Vice Media.
Apple looks well poised to enter the market given that Spotify is still operating at a loss. If Apple is able to gain momentum quickly, it will mean trouble for Spotify in the months to come.
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