Spotify just strike 3 million paying subscribers, the Financial Times reports. That probably seem like a remarkable milestone for the popular on-demand music program, but how remarkable is it truly?
Only just 64 days have passed since Spotify declared it reached 2.5 million subscribers in November. That indicates 500,000 customers have signed up to pay for the service in that time–or, from another viewpoint, a back-of-the-envelope calculation discloses that 7,000 to 8,000 users are registering to Spotify each day, typically. And don’t forget: They are global statistics from a program that has been recommended by the record labels and media, and boasts the powerful support of Facebook’s Open Graph.
Spotify’s growth provides weight to evangelists of Facebook’s Open Graph, which allows third parties to produce applications on top of the social network. Earlier this week, Facebook COO Sheryl Sandberg outlined Spotify’s success, stating that Facebook has helped increase the than 7 million users of the service.
Spotify gave some protection of its freemium-to-premium conversion rate today, displaying how 20% of its active users are now paying subscribers, in contrast to just 15% last year.
As the Swedish company’s carefully selective disclosure of sums and figures make it rare to find a full picture of its business, the data released lately presents cause of optimism.
At a press conference recently, Spotify founder Daniel Ek says the service had dispensed $500 million in royalties to rights holders in its four-year existence, using a full half of that arriving the last nine months. It’s a considerable sum, to be sure, though artist complaints over low payment are legion.
All informed, the service reaches 20 million customers in 17 countries, with a quarter of those paying customers. A further $100 million in investment came in many months ago — with regular marketing partner Coca-Cola becoming a minority investor bumping up the company’s estimated value to $3 billion.
Yet there’s lots of potential within the service for app-makers, and Spotify continues to be particularly active in opening its API, with much more apps such as album review aggregators and a Songkick database of upcoming concerts planned to bow early this year.
Entering the new year, expect further purchase of the service’s social functions, using the site having unveiled a “Follow” function made to let users track playlists from friends and artists — a key component of Spotify’s strategy.
How to record Spotify music?