Spotify has shared some new numbers, and they’re showing impressive growth in a few areas. For one, they’ve reached a total 6 million paying subscribers, which is 25% of the total number of active users (24 million).
In addition, the Spotify Facebook app registers an incredible 1 billion daily activity shares (you know, when you get a message that your friend is listening to the new Drake song… again).
According to Billboard, if Spotify adds no more users and doesn’t make any advertising money (which they do) they will make $684 million this year. This seems like good money, but the company is expected to pay over $500 in royalties, and they’ve got expenses too, and those expenses rise with the addition of new users.
While Spotify is generating big revenue, that doesn’t mean big profit. Hypebot claims that the company’s earnings are “far from enough to allow the company to turn a profit.”
With this new Copyright Alert System in place, Spotify can probably expect their numbers to keep going up as the fight against illegal downloading intensifies. But is their business model sustainable? Only time will tell.