Spotify’s global head of creator services, Troy Carter, told music magazine Billboard in an interview that the Swedish-born company had hit the 39 million paying subscribers mark.
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Spotify’s last official figure for its subscribers total was 30 million in March 2016.
Amazon is reported to be gearing up for the launch of a cut-price music streaming service that costs just $5 a month – half the price of rivals Spotify and Apple Music. While Spotify’s annual revenue ticked up by 80% past year to $2.2 billion, the company paid out $1.8 billion in licensing fees, mainly to labels and music publishers, with roughly 55% of its revenue reportedly going to labels such as Universal Music Group, Sony Music Entertainment sne , and Warner Music Group.
That’s not to say they don’t remain a threat, as the richest tech company in the world Apple have been able to secure exclusive releases from major artists like Frank Ocean and Drake. To combat Apple Music, Spotify is also reportedly exploring the possibility of locking down artist exclusives now that Apple and Tidal have made waves with their own exclusives. Spotify now has short-term deals with the labels after agreeing to extend contracts from the eight-year-old Swedish streaming service’s early days in the industry.
Carter says that despite his role being to strengthen Spotify’s relationships with artists his goal isn’t to sign them up to support Spotify exclusively as an artist.
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Carter feels that Spotify’s future is bright, despite increasing pressures from competitors, evidencing Spotify’s brilliant rise in subscribers and their role in introducing new music to people.
