Spotify Now Has 60 Million Paying Subscribers

Spotify has added another milestone to its growing list of achievements. The music streaming giant has recently hit 60 million paying subscribers, which is equivalent to a pace of about a couple of million new subscribers in any given month. And if one takes into account the customer turnover (users who decide to terminate their accounts), the actual numbers every month may be well over 2 million new subscribers.

It was back in March early this year when Spotify reported having breached the 50 million mark when it comes to the volume of paying subscribers. And in a span of four months, the company has added another 10 million to that tally. At the rate the music streaming service provider is adding paying subscribers right now, it just might reach a hundred million in no time.

With this level of success, is a near term IPO somewhere within sight? Interestingly, Spotify has been planning to tackle Wall Street for years now, but various financial struggles, problems relating to contracts, and even legal issues have continued to hinder the company’s IPO plans.And based on how other companies like Pandora and Snapchat have fared on Wall Street (not very impressively), Spotify may have every right to take its time. Indeed, fellow music streaming giant Pandora continues to face challenges related to finances on top of it dealing with stalled growth in terms of active users. Snapchat, on the other hand, is dealing with sinking shares.

IPO plans aside, Spotify may be more interested in warding off Apple Music. Nearly a couple of months ago, Apple’s music streaming subscription service had reached the 27 million mark in terms of paying subscribers. It is worth noting that Apple Music hit this number in just two years, while it took Spotify over ten years to breach 60 million. 

Will Spotify be able to dominate the world of music streaming for long? It is hard to tell for now, especially when one considers how Spotify has boosted its subscriber gaining efforts. Of course, Apple Music is never one to be underestimated. Through a simple business model consisting mainly of paid subscription accounts and free trials, Apple’s offering has managed to grow in popularity. Yes, it may not be a complex approach, but boy does it work, and at the same time, actually comes off as a more cost effective model. But Spotify is also changing the music industry. This battle between the two will be interesting to watch for years to come.