Popular European music streaming service Spotify opened the kimono a little bit, revealing that they have 1 million paying users.
Spotify founders Martin Lorentzon and Daniel Ek
Image: Spotify
As AllThingsD's Peter Kafka points out, that's 15% of their around 7 million active users. That's an absolutely astounding number. Most "freemium" startups are told to expect around 1% of their users to convert to paid, and 5% is considered really good. So 15% is really huge. It's even bigger when you consider that we're talking about online music, which can be obtained totally free (albeit illegally and somewhat inconveniently).
We've said it before and we'll say it again: Spotify is an amazing product and business that has probably "cracked the code" on building a music service that users love and that can make tons of money. Your writer has been a happy Spotify premium subscriber for over a year and loves it.
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Glad to see SPOT looks as though it is here to stay!
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