UK Spotify Surpasses 20 Million Paid Subscribers

On June 10, Spotify, the UK-based leader in music streaming services, announced its paid membership base had surpassed 20 million users. Including free service users, its active user count exceeds 75 million.

Spotify launched its service in Europe in 2008 and expanded into the US in 2011. Paid members reached 10 million in May 2014. Since then, the number has doubled to over 20 million in just one year. As the service grows, the royalties paid to artists, songwriters, and rights holders are also increasing at a record pace. According to the company, it has paid over $3 billion in royalties to date.

New Entry into Video Streaming Service

Spotify entered the video streaming business in late May. According to Ad Age, it is expanding beyond its music streaming roots to provide a video platform centered on entertainment and news content. Major media companies like ESPN, Vice, Viacom, NBCUniversal, Disney, and Condé Nast will provide content. Additionally, Spotify will experimentally distribute original content, including a dance program produced by actress Amy Poehler's online community for girls, "Smart Girls," and "Turntable," a show featuring famous chefs and musicians competing in cooking and music.

Jeff Levick, the company's Chief Revenue Officer, commented, "We want users to experience a deeper Spotify experience by switching between audio and video depending on their viewing environment." He further expressed confidence, stating, "Not only can we expect increased viewing time, but the new user data gained through video viewing will also provide advertisers with new ways to reach users."

While the exact types of ads to be offered are still under consideration, the company plans to leverage its accumulated user data to provide advertisers with customer targeting based on "where and what users are doing." For example, Spotify can precisely identify the music users listen to in specific situations, such as "while preparing for a party on Saturday night" or "upon waking up on Monday morning before heading to work." Levick explained, "Using this data, we can provide information not just about viewing times but also viewing contexts, enabling us to deliver more relevant messages to users."

The expansion into video services is expected to further enrich data on user viewing habits. The company is also considering the production of data-driven "branded content" going forward. Spotify's launch date in Japan remains undecided.

Source: Ad Age

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