Spotify reaches 100 million monthly users
Streaming giant Spotify has reached the milestone of more than 100 million monthly active users. 30 percent of these users are paying for premium subscriptions. Based on its last count, Spotify is adding 1.8 million users each month — the service had 89 million monthly users at the end of 2015, meaning an increase of 11 million in the past six months.
Spotify has also recently overtaken Skype as the highest-valued European startup. According to tech investment bank GP Bullhound, Spotify is worth roughly $8.5 billion. Recent filings indicate that Spotify’s revenues rose 80 percent in 2015 to $1.5 billion — an increase bolstered in part by the growth of the service’s paid subscriber base.
“The economics of the freemium tier remain challenging and every single freemium user is lossmaking on a gross margin basis,” said Alice Enders of Enders Analysis. “What’s heartening is it is paying off in terms of subscribers. We think it’s made very good progress this year.”