Photo: Illustration: Ellis Hamburger
Not bad: three weeks after launching in the U.S., music service Spotify has more than 1.4 million free users, according to Peter Kafka at AllThingsD.Of those folks, 175,000 are paying for the service — that’s up from the 70,000 that Billboard reported on July 24.
At that rate, Spotify is on track to top 20 million free subscribers and — more important — 3 million paying subscribers in its first year, which would put it in easy first place among all music subscription services.
The current leader in the U.S., Rhapsody, has about 800,000 paying customers.
That’s still a far cry from the 50 million paid and unpaid subscribers that internal marketing documents revealed that Spotify was hoping to have by the end of year one. Also, adoption rates could slow after six months, when the company’s policy of offering unlimited free songs to Web-based visitors might end. (Spotify hasn’t said for sure, but that’s a very expensive way to gain customers and can’t continue forever.)
But the company probably still has some tricks up its sleeve, like a rumoured partnership with Facebook that hasn’t been announced yet.