With 40 million paying users, Spotify could become profitable in 2017
Even at its peak, AOL only reached 26.2 million subscribers. At 40 million premium subscribers, Spotify stands as the heavyweight in the music streaming industry. Of course, as it is privately held, the validity of that 40 million number could be called into question — much how the AOL 26.2 million also included those in the free trial period — but it’s still a very large number of people with “card on file” and the ability to pay for other services.
Some analysts have argued Spotify’s business model is flawed and it is hostage to the record labels. But with 40 million paid users, the company could be near a tipping point and may have greater leverage in its negotiations with the music industry.Apple said in September Apple Music, launched in 2015, has 17 million users and is available in over 100 countries. Amazon’s music service, launched this year, was competing more with another independent player, Pandora Media , rather than Spotify’s user base, Parson said.
Source: Spotify could become profitable in 2017 – Business Insider
