Since its launch last month, streaming music service Spotify has accumulated 1.4 million members in the U.S., according to All Things D. What’s arguably more important among that tally is that about 175,000 people, or 12.5 percent, are paying subscribers.
Spotify declined to comment on this story.
Spotify is one of several companies in the U.S. trying to change the music industry by delivering millions of streaming songs for a nominal fee per month, but it arguably the most high-profile after its powerful debut in Europe. It’s competitors in the States include Rhapsody, MOG, Grooveshark, Rdio, and Pandora. Pandora, which recently went public, has 94 million registered users, while Grooveshark has 10 million registered listeners. Rhapsody has 750,000 paying subscribers.
Getting nearly 13 percent of users to sign up for a premium membership or upgrade from free use is actually a strong number, considering the service has only been available for a month. At the moment, Spotify lets U.S. users with an invite (which is easy to get) enjoy the service for free with commercial interruption, but it will reportedly cut that cord in five months and make users pay up if they want access to all the music Spotify provides.
In Europe, Spotify has 1.5 million paying subscribers, but there is no longer any plan that lets users listen to unlimited music with commercials.
Spotify currently has three plans in the U.S. In the aforementioned first plan, users get unlimited songs at their PC or Mac with commercials. For $5 a month, users can listen to Spotify’s catalog on their computers without ads. For $10 a month, they can listen to unlimited music on their computers and through iPhone and Android applications.
Have you tried Spotify yet? What do you think?