more importantly, some numbers (all quotes from the Pando article):
- 20 percent of Spotify’s users subscribe to Spotify’s premium service
- Around six million people paying $10 a month, or $120 a year
- 4.5 billion listening hours on Spotify in the last year
- The vast majority of playlists on Spotify have more than 20 songs, he said. Beyond that, more than half of the 4.5 billion listening hours on Spotify in the last year have been on songs already saved in a user’s catalog
- Spotify made $576.5 million in revenue last year and lost $77 million. The vast majority of that comes from subscribers: Back of the envelope calculations show subscriptions make up the vast majority of it — six million subscribers at $120 per year means $720 million in revenue.
- Advertising to the free users is still meaningful to Spotify, though, since it is how the service monetizers 80 percent of its users.