The music streaming service Spotify has hit 10 million subscribers, according to an official blog post yesterday.
This marks a 4 million growth in subscriptions since March 2013, as well 24 million new monthly users in the same time.
The world’s largest music streaming company also claims to have an additional 30 million monthly active users. The majority of Spotify’s users stream a limited amount of music for free. Paying subscribers do not have to listen to Spotify’s short ads between songs.
In an official press statement, Spotify’s founder Daniel Ek said he was confident that Spotify is “widening its lead” in the digital music space:
We’ve had an amazing year, growing from 20 markets to 56 as people from around the world embrace streaming music. 10 million subscribers is an important milestone for both Spotify and the entire music industry.
Spotify, which has expanded into 56 markets, claims its users have created a grand total of 1.5 billion playlists, of which 5 million are created or updated every day.
Will Spotify ever make money?
Even with 10 million subscribers and another 30 million active users, Spotify is a long way from profitability.
According to a report that surfaced last year, Spotify has lost $200 million since it was founded.
With the Beats streaming service now part of the Apple empire, Spotify is no longer the only major service vying for users.
“The whole music subscription sector is intrinsically unprofitable,” according to a report by Generator Research, which claims that usage growth in music streaming services can never catch up with the cost of operation.