Spotify Nets £1 Million a Month From Fees

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Spotify has been relatively tight-lipped about just how much money it makes for its streaming music service, but now, in a fit of uncharacteristic openness, it’s discussed just what kind of revenue it sees from subscribers.

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According to The Register, Spotify is making over £1 million a month from the €10(ish, depending on region) subscription fee. What that means is that Spotify makes a million pounds a month from users paying not to see and hear ads in its streaming music service. While the difference in cost from region to region makes it difficult (read: impossible) to use this figure to quantify just how many people are paying subscribers, it indicates an absolute minimum of 100,000, with the actual figure being anywhere between 100,000 and 600,000 subscribers.

Perhaps most interesting is the news that the number of Spotify customers who make the jump from the free, ad-supported model to the subscription-based service is, for the moment, below 10%. If nothing else that says a lot about Spotify’s customers, many of whom seem perfectly happy to stomach the services relatively infrequent ads for the free access to music.

It’s also worth noting that Spotify seems to be doing the polar reverse of Microsoft’s search engine Bing in terms of marketing and impact. With a userbase growing so fast that Spotify has been forced occasionally to close registration to preserve functionality for those already with accounts, it turns out that Spotify has spread largely through word of mouth; the company has spent only €2,000 on marketing in the UK, one of its biggest markets.

Sadly, for now there’s still no word on just when we can expect to see Spotify working for those of us here in Ireland. The various loopholes that allowed Irish users to use the service (barring a proxy connection through a country that Spotify is available in) have mostly been closed.

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