Spotify: 1.4 Million American Users; 175,000 Paying

Spotify has quickly amassed 1.4 million American users, according to stats just shared by the Wall Street Journal.

And of that, 175,000 – or 12.5 percent – are premium subscribers.  Spotify has declined any official confirmation on the numbers – perhaps a worrying detail – though they did note that uptake “exceeded expectations” upon launch.

Sounds like a great start, especially considering that Spotify has been working on an invite-only basis.  That is a tool for achieving a sense of exclusivity and heightened demand, though it can dull initial uptake.  Not in this case, though Spotify still claims a more sizeable paying percentage in Europe.  Specifically, the company claims that 15 percent of its active userbase is paying, a sum of 1.6 million.  Others have pegged the European number closer to 10 percent, and Spotify is guilty of massaging its totals to only include ‘active users,’ however defined.

Separately, the question is whether labels can live with a 12.5 percent conversation rate, though it may be early to make any judgments.  And, if Spotify’s topline userbase ramps aggressively, it may not matter.  Meanwhile, a number of issues are dogging the launch, including the discovery of a nefarious, undeleteable cookie which Spotify has not agreed to retroactively fix.

On the competitive front, the heat is now on Rhapsody, which has 800,000 after years in the country.  Others, like MOG and Rdio, appear to have been leapfrogged in a matter of weeks.

13 Responses

  1. billeeto

    and Apple is expected to lauch a competitive service (remember they bought lala)…

    • Tablazines

      Yes.. every knows aobut Apple’s iCloud service by now. It’s been all over the tech sites for months now and developers (including myself) have been playing with it for a while.

      • billeeto

        what is this “iCloud” of which you speak? the one I’ve heard of is intranet, not internet, and pushes your own content to your own devices. the streaming service is different. but you appear to be very close to steve, so i’m sure you’ve tested the new beta streaming service that’s going to compete with spotify. so spill your details.

  2. @bazarMusikal

    BazarMusiKal

    Ah ouais ba forcément on joue pas ds la mm cour.

  3. HansH

    Yeah let’s drag the off topic cookie thing into this post again. Why not! True as it may be. What’s the point.

    • Visitor

      Hans, the cookie story has not gained any traction therefore Spotify has likely not removed the cookie even though they may claim to have.

      /yv

  4. Visitor

    Subscription Model: those who can’t afford $60 per year get the music for free while those who can afford more than $60-$120 per year pay a maximum of $60-$120 per year for an unlimited library.

    Doesn’t make sense unless you are a hopeless socialist. Socialism is an inefficient business model.

    On the surface, music executives appear to be embracing socialism as their business model, thus they are becoming more anti-sales and anti-profit. The intent of capitalism is to reduce waste whereas socialism tends to increase waste (losses).

    In the long term, a greater influence of capitalism(the only business model) over socialism(part of a government model) will most efficiently promote the survival of humanity.

    /yv

  5. CraigDiPaolo

    Sorry, not believing this number without better accountability from Spotify. Everyone fudges numbers, and this looks really suspicious:

    (a) notice the company is not offering any official statement,

    (b) there is no third-party company to confirm the data,

    (c) company caught hiding cookies that cannot be deleted to consumers (ie what else are they hiding)

    (d) royalty receipts are near zero for many artists and labels.

    Let’s get the real #s. I’m calling B–SH–T.