After only a few days after it was introduced, Apple Music is already starting to affect the music streaming services industry. And one of the first responders also happens to one of the biggest players in the industry -- Spotify.
Via a blog post, Spotify announced that it had already amassed over 20 million paid subscribers, as well as over 75 million active users. The music streaming service provider even boasted the swiftness it had acquired its considerable subscriber base. It is true that it took the company more than five years to gain 10 million paid subscribers, but it only took a year to reach 20 million paid subscribers. As of the month of May last year, Spotify had 10 million paid subscribers and 40 million active users. By the time 2014 was over, those figures had grown to 15 million paid subscribers and 60 million active users.
Apart from its impressive subscriber figures, it appears that Spotify is also doing well financially. According to a report by the Wall Street Journal, Spotify has closed a funding round for a total of $526 million on an $8.53 billion valuation.
Spotify has not confirmed this amount, but as claimed by Swedish telecoms company TeliaSonera, it had invested $115 million in the music streaming company in return for a 1.4 percent stake.
Spotify is in the midst of running a special promo for United States subscribers that offers its usual $10 a month subscriptions at only $0.99 for three months. The company had actually ran this same promo earlier this year but decided to run it again because it did a good job of retaining subscribers.
Spotify will definitely need to help on to its subscribers for as long as it can. A few days ago, Apple had introduced is new Apple Music music streaming subscription service. The iPhone maker had acquired Beats Music the year prior and now it appears that it is now bearing fruit in the form of Apple Music.
Interestingly, Apple was not that enthusiastic about music streaming until fairly recently. After all, the tech giant was really earning well from digital downloads, so it was pretty understandable that the company was not to keen on offering subscription services for music streaming. Of course, this gave Spotify all the space they need to flourish. And flourish it did, alongside other music streaming service providers. Music streaming now has surpassed CD sales in the US, which is considered the largest market for music related sales in the world. And now it is set to surpass digital downloads too, which apparently has been on the decline in the last few years.
Apple Music is set to launch on June 30th of this year. Until then, Spotify will have to continue battening down the hatches.
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