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Spotify: 50-million subscribers

Sspotify 50 million 300x300potify used Twitter to announce its milestone of 50-million subscribers, and to thank its customers. By any standard, Spotify’s subscriber growth has been impressive. The company noted 40-million paying users in September, and 30-million less than a year ago. Only a few years ago, observers scoffed when Founder/CEO Daniel Ek imagined scaling his celestial jukebox vision to 100-million users.

As the global leader in on-demand music service, Spotify can better counter persistent (but fading) complaints about payment to artists, and bolster its argument for an IPO. With subscriptions retailing between $5 and $10 a month, and with Spotify sending about 70% of revenue to record labels, the company sends between $175M and $350M to recording artists each month. An analysis this week by MIDiA Research found that global record label revenue increased by $1-billion in 2016, the largest increase in 15 years. Streaming revenue grew to $5.4-billion, a 49% increase.

That doesn’t mean the company’s relationship with record labels is swimming. the two sides have been treading water with monthly contract renewals, according to Bloomberg. “Spotify hasn’t had long-term deals with any of the three major labels for months, and recent talks have reached a standstill, according to people familiar with the discussions who asked not to be identified discussing private business matters” — that according to Bloomberg.


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9 Comments

  1. Spotify is still not paying Artists !
    Streams last 90 days 02/21/17
    Spotify – Streams – 18,115
    iTunes – TK downloads – 683
    Apple Music – Streams – 15.490
    Pennies from Spotify and apple
    Feb 10, 2017 Spotify Sale $1.10 details
    Feb 10, 2017 Spotify Sale $0.84 details
    Feb 10, 2017 Spotify Sale $0.68 details
    Feb 10, 2017 Spotify Sale $0.64 details
    Feb 10, 2017 Spotify Sale $0.59 details
    Feb 10, 2017 Spotify Sale $0.89 details
    Feb 10, 2017 Spotify Sale $0.87 details
    Feb 10, 2017 Spotify Sale $0.49 details
    Feb 10, 2017 Spotify Sale $0.51 details

    • Spotify does pay artists. The problem is, it’s just not as much as you wish it would be.

    • I also second what Billy Bob said. I believe that there are factors, such as popularity, involved with how much each artist gets paid.

    • Dave, I will let your comment remain, but in the future will delete your comments that are bluntly untrue, such as the first line of your comment here. Spotify does pay artists, as your own comment demonstrates.

      • Thank you Brad,
        What I should have said is Spotify is still not paying Artists Much !
        Our Spotify Streams in the last 90 days 02/21/17 Spotify – Streams – 18,115.00 In exchange for our18,000 streams we received pennies. In the last few years our CD sales and Downloads have gone way down. No one will purchase music they can listen to for free. Spotify, Pandora etc are going to destroy the music industry!

        • That’s why I say his music isn’t very popular. Obviously the reason is because it’s not very good. Music that sucks = poor sales.

        • Billy Bob has a good point. There are other factors besides streaming for why not all music sells well.

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