[LINK] "Spotify Hits 50 Million Paid Subscribers, Lifting Music Industry"
Bloomberg's Lucas Shaw notes that although Spotify is not yet profitable, it has managed to accumulate quite a few subscribers. Will this be enough to let it last?
Spotify has surpassed 50 million subscribers, extending its lead over rivals Apple Music, SoundCloud and Google as the world’s largest paid music streaming service.
The service, owned by Stockholm-based Spotify Ltd., has been growing at a breakneck pace. The company said it had 30 million subscribers less than a year ago, and 40 million subscribers in September. Apple Inc., owner of the second-largest paid service, said last month its streaming service has more than 20 million customers.
Adding paying customers will help Spotify pitch investors, who expect the company to file for an initial public offering and are looking for signs the company can convert its growing subscriber base into a sustainable business. Spotify, which is unprofitable, generates almost all of its sales from subscriptions, though the music service also has tens of millions of additional users who listen for free, supported by advertising.