Online music streaming service Spotify has announced that it has accumulated a million paying subscribers in Europe, with an overall user base of 6.67 million.
"For any kind of ‘freemium’ business, that is a really, really good number. It’s safe to say we are growing up. We are still a toddler, but we are growing faster and faster every day," Daniel Ek, Spotify’s chief executive said in a statement to the Financial Times.
Spotify had been incurring losses in recent years as the company was forced to pay the licensing fees and it struggled with only a few thousand paying subscribers. Spotify comes in a free, a standard and a premium version. With the free version users have to put up with advertisements at regular intervals while the paying users have a monthly subscription of either £5 or £10.
The company, which is currently in the middle of a fresh round of funding, claims that the new subscriber figures make it the largest digital music subscription service in the world.
Spotify is busy raising additional capital of $100 million which would value the company at $1 billion. The capital is required by the company to finance its entry into the US market.
Spotify’s launch in North Amerrica has been delayed owing to some questions raised by record companies over Spotify’s business model.