Spotify tops 100m active users – but can it keep up its conversion rate?

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Spotify has confirmed that its platform now officially boasts more than 100 million active users.

The last official confirmation we had from the Swedish service was that it had 89m active users at the close of 2015.

That means that Spotify is currently adding around 1.8m active users to its service every month.

But the question on the lips of the music business will be… how is that user growth converting into subscribers?

Within Spotify’s full year 2015 financials, uncovered last month by MBW, we discovered that the service finished the year with 28m paying subs – a premium conversion rate of 31.5%.

If Spotify has maintained that conversion rate throughout 2016, it will, obviously enough, have notched up around 31.5m paying subscribers to date.

In March, Daniel Ek (pictured) revealed that Spotify had reached 30m paying subscribers – suggesting its paying customer base is growing by around 1m a month.

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  • drk@dynamicrecording.com

    Open letter to the Music Industry:

    As you know, there is a lot of discussion regarding the fair payment

    of writers and performers of music

    that is being streamed – whether for a very small price per stream or for free.

    At Dynamic, where we have many, many recordings available on CD Baby,

    we feel that

    our income has been adversely affected by the policies in place right

    now. A look at our earnings (and therefore the earnings of CD Baby too!)

    demonstrates that through the first quarter of 2016, our revenues are

    only at 67% of the same quarter last year.

    2015 was down slightly from 2015, and I’m guessing that if we had not

    added additional titles during 2015, the difference

    may have been more significant. If this trend continues through

    2016, being down 33% in CD Baby income is not good.

    And we’re only one company on CD Baby – if other musicians, record

    companies, independent performers, etc. are seeing the

    same trend, it’s a serious loss in income to people who are not being

    compensated properly for streamed and free music.

    We believe CD Baby should unite with the others who have taken a

    stand to gain reasonable payment for artistic endeavors.

    Spotify payment to Dynamic Recording:

    63 streams – $.06 cents. This is a major rip off.

    Radio stations pay us 8.5 cents per play.

    cdBaby, iTunes, amazon all pay us well.

    Smart music buyers love the free music and do not purchase or download.

    Many top Artists have pulled there music from streaming, because their sales

    and downloads have dried up.

    Sincerely,

    Dave Kaspersin

    President

    Dynamic Recording Studio Independent Label