Tuesday, March 08, 2011

Spotify hits milestone with 1 million subscribers

Online music service Spotify has announced that it now has one million paying subscribers across Europe. News of the milestone comes as Spotify continues a fund-raising from investors in advance of a launch in the US. The Anglo-Swedish company has 6.67 million users, the majority of whom use a free service subsidised by adverts. Spotify's profitability depends on users switching to premium services that remove adverts and allow listeners to use smartphones. The company announced on its website's blog: "It seems like only yesterday we were hatching ideas for a new music service in a tiny office-cum-apartment with a broken coffee machine. "So it's with a sense of real pride and excitement that we can announce a new milestone today, having welcomed our millionth paying subscriber to the service." Spotify is in the process of a $100m funding round that analysts estimate values the company at $1bn (£616m)
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