Spotify climbs to 20M paid subscribers, gets $526M in new funding

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With Apple Music on the horizon and due later this month, competing and long established music streaming service Spotify announced on Wednesday that it now has more than 75 million subscribers, and 20 million of those are paying a monthly subscription for ad-free music in the Premium tier.

Spotify now has 20 million paid subscribers

The numbers revealed by Spotify reveal fairly solid growth, as at the start of this year the same figures were 60 million and 15 million each. One year ago, the company had just 40 million subscribers, with only 10 million of them on the lucrative Premium tier.

Also this week, Spotify won another $526 million in additional funding, more than $115 million of which came from Swedish mobile network TeliaSonera. The two companies say they will cooperate on things such as media distribution, data analytics and advertising, claims the Wall Street Journal. The funding now in place makes Spotify valued at more than 8 and a half billion dollars.

Both these announcements come in a week in which Apple revealed its Apple Music streaming service, which is expected to become a huge competitor to Spotify. The service offers on-demand streaming and radio content, and costs $9.99 for unlimited music, or $14.99 for a family of 6 people. The service will be free for everyone for the first three months of registering.

Spotify does allow people to access music for free on an ad-supported program, and is also looking to offer podcast and video content in the future. Meanwhile, the only free Apple Music content will be the Beats 1 live radio station hosted by celebrity DJs such as Zane Lowe, from L.A., New York and London.

Initially, Spotify will of course have much wider support for different platforms with apps for iOS, Android, Mac, Windows, the Internet, Roku, PlayStation and more. When Apple Music launches in June 30th, it will be initially limited to iOS, the Mac, and Windows, with Android and Apple TV versions due later in the year.

Apple apparently is aiming to reach 100 million paying subscribers, which would be the largest in the music industry if it can achieve that figure. To do that, it probably needs to cover as many platforms as possible (though probably not Windows Phone or BlackBerry devices, as their market share is too small to warrant the effort, one presumes)…

SOURCE: Apple Insider.

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