Swedish music streaming service Spotify said on Monday its user base had grown to 100 million, up from 75 million previously, as it pushed into new markets and despite competition from the likes of Apple Music.
Spotify has the music streaming industry’s biggest paid subscriber base, with 30 million users paying to listen, but the vast majority still tune in for free with commercial breaks.
Competition is fierce with Apple Music launched just last year and already claiming 13 million paid users while Alphabet’s Google competes with Google Play Music and YouTube.
Sources have told Reuters that Amazon.com is preparing its own standalone service.
Spotify, founded in 2006, pays more than 80 percent of its revenue to record labels and artists and has not yet shown a profit as it spends to grow internationally.
Last year, it made an operating loss of EUR 184.5 million ($209 million), widening from EUR 165.1 million in 2014.
Spotify recently raised $1 billion (roughly Rs. 6,632 crores) in convertible debt from investors, with strict conditions. Spotify was valued at $8.2 billion (roughly Rs. 54,385 crores) in June, when Finnish-Swedish telecoms operator TeliaSonera bought a 1.4 percent stake. The company has more than 30 million subscribers.
(With Inputs from Reuters 2016)