Spotify announced a new milestone of 10 million premium subscribers paying an average of $120 per year.
Spotify, the renowned music streaming service, is celebrating the success of its premium line service with 10 million paying subscribers across the world. As it marks a new milestone, the Swedish firm also shared some interesting statistics in an infographic on the official website, Wednesday.
With 10 million paying customers, Spotify is bagging an average of $120 per year from each customer, which adds up to $1.2 billion in annual revenue.
Not all of the annual revenue from the premium subscriptions goes in to the company's pockets. Spotify pays huge sums as licensing fee. On a brighter side, the private company also scores big from advertisements on its free model and corporate deals with partners like HTC and Sprint, according to Forbes magazine. As per Spotify's data, the paid subscriptions and active user base have increased by 66 percent since the last time it revealed it numbers.
The 100-million-figure is a part of Spotify's 40 million active user base across 56 markets worldwide. This is up from 20 million active users in December 2012, out of which 5 million were paid subscribers. In March 2013, the number grew to 6 million premium subscribers and 24 million total users. And continuing the rapid pace, the company now stands proud at 10 million premium customers.
"We've had an amazing year, growing from 20 markets to 56 as people from around the world embrace streaming music," Daniel Ek, Spotify's chief executive and co-founder, said in a statement, NY Times reports. "Ten million subscribers is an important milestone for both Spotify and the entire music industry."
The music streaming market is getting intense as more and more players continue to flood the space. Spotify is already competing with rivals such as Rhapsody, Rdio, Deezer and Google Play Music All Access, and new reports indicate that Apple will also join the race with its rumored acquisition of Beats for $3.2 billion. If the Cupertino tech giant goes ahead with the deal, Spotify will face some serious competition.
Some of Spotify's fast figures reveal that the firm has already paid up to $1 billion to rights holders since its launch. The service offers over 20 million songs and adds 20,000 songs each day with over 1.5 billion playlists created so far.
Just last month, the company gave a major makeover to its Android app with a much cleaner and a polished UI with a dark theme.
