Vast CD collections, whilst physically nice to have are redundant. Despite vinyl sales reaching sales of 13 million last year – the highest it’s been since 1991 – their growing-popularity can be pinpointed down to nostalgia reasons. Conversely, the erstwhile physical music alternative of digitally owning your music using services such as iTunes continued to decline last year. It’s therefore been more than apparent that the future of music is streaming. When it comes to streaming, Spotify are streaking ahead of it’s handful of competitors.
The Swedish company revealed on Thursday in a tweet that it has surpassed 50 million worldwide subscribers.
— Spotify (@Spotify) March 2, 2017
Spotify’s nearest rival is the younger service, Apple Music which launched in 2015 and which, as of December 2016, had less than half the amount of subscribers of Spotify, with 20 million.
Spotify have been working to retain it’s lead on its ever-growing list of competitors in the on-demand music streaming war. German company Soundcloud offers an independent feel, allowing users to upload, record and promote their original music. Amazon music, backed by the retail giant brand pushes its music offering side-by-side its Prime offering of on-demand TV and film as well as next-day delivery perks. Whilst, Apple Music tries to lure customers to its service and away from Spotify by setting up exclusives, restricting albums from being initially shared on any other service – as seen with the last years greatly anticipated launch of Frank Ocean’s new album, Blonde.
Spotify itself in recent times has tried to set itself apart by offering original podcasts and progamming. As well as that, just this week launched a beta test to a small group of users called ‘Spotify Hi-Fi’. This new service will come at an additional cost of around $5-$10, offering CD-quality audio, as well as discounts on it’s premium vinyl collection of music.
Back in June 2016, Spotify announced it had over 100 million total users, including those who chose to listen for free and therefore are subjected to advertising.
However, despite its impressive market share and subscriber and user base, the Swedish company’s most recently available report shows it lost $194 million in 2015. They are preparing for an impending IPO and therefore, are in the midst of negotiating new licensing deals with major record labels in order to cut royalty fees and look to start to turn a profit.
Whilst celebrity endorsements won’t lead to profits, several did tweet yesterday congratulation Spotify:
PAID SUBSCRIBERS?! People are paying for music?! YAS❗❗❗CONGRATULATIONS Y’ALL, I’ve made so many sexy playlists because of you 😘🎶 https://t.co/FDpfDCT6s5
— KATY PERRY (@katyperry) March 2, 2017
— Justin Timberlake (@jtimberlake) March 2, 2017
Congratulations to everyone at @Spotify for reaching such a huge milestone today! 💗
— Demi Lovato (@ddlovato) March 2, 2017