Spotify just updated its About page on a new milestone. The new bullet point simply states Subscribers: Over 60 million (as of July 2017) which is a significant increase in their paid subscriber base. In March, the service counted 50 million subscribers.
Despite New Gains, Spotify Is Still In A Pickle
The update comes in sharp contrast to the March announcement when Spotify posted on Twitter using the hashtag #Spotify50. A number of celebrities including Justin Timberlake, Katy Perry, and John Mayer congratulated the company on the new milestone. Now, however, the company silently added the update under a list of Fast Facts.
The service’s dramatic increase in paid subscribers is the fastest one yet, taking only about 5 months to amass the new 10 million. On the other hand, the yearly financial disclosure shows that Spotify has suffered losses up to $581 million dollars relative to the revenue of $3 billion. Meanwhile, the company is involved in the “fake artist” controversy, which refers to songs with lower licensing rates by artists using pseudonyms that have been included into playlists. With this practice, the company sought to reduce content costs. However, powerful partners like Warner Music Group consider this practice “offensive”. Popular labels can negotiate higher rates for their music relative to their competitors.
Popular labels can negotiate higher rates for their music relative to their competitors. Spotify faced accusations of adding the obscurely produced music to intentionally avoid the high price points. However, a spokesperson from Spotify declined the accusation, even though they acknowledged that rates indeed vary.
Despite the controversy, it seems that the new gain might still convince the investors that the service is not heading towards a downfall. In addition, reports show that on-demand audio streams grow year-over-year. In 2017, audio streams grew to $184.3 billion. So, despite Spotify’s keeping a low profile lately, statistics might budge it to resurface soon.
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