9 Aug 2011

REPORT: Spotify Has 1.4M US Users, 175,000 Paying Subscribers

Since Spotify launched in the US last month, the service has grown by leaps and bounds. After just one week, it reportedly had 70,000 paid subscribers. Now it has been reported that around 1.4 million Americans have signed up to Spotify even though the free version of the service is still invite-only.
According to All Things D, 175,000 of those users are paying subscribers, which is a conversion rate of 12.5 percent. It is not clear how many are paying for the $4.99 unlimited Web plan and how many are paying for the $9.99 premium subscription, which includes access to Spotify from mobile devices.

Spotify has 1.6 million subscribers in Europe — where it launched in 2008 — so the fact Spotify has 175,000 subscribers in the U.S. after less than a month is impressive. It will be interesting to see if Spotify can sustain this rate of growth once it opens up to the public, since the hype surrounding Spotify’s launch may have led to many users opting to taking out a subscription so that they could check it out without having to wait for an invite.
Spotify has a long way to go to catch up with Rhapsody, the biggest streaming music service in the U.S. Rhapsody said last month that it has 800,000 subscribers. Spotify is also facing competition from Rdio, which last week launched its iPad app.

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