Spotify recently announced that it now has more than 60 million paid subscribers. That means the company has added 10 million paid subscribers since March, when the count was about 50 million. As of last month, Spotify had 140 million total users including both paid and free.
Since it last released subscriber numbers, a few things have changed for Spotify. The company has entered into licensing agreements with Universal Music Group and Sony. These deals will give the labels’ artists the option to keep their music off of Spotify’s free tier for a certain period of time, while Spotify gets a slight break in royalty payments.
Spotify is also close to agreeing to a new licensing pact with Warner Music, the last big music royalty deal it needs before pushing ahead with a U.S. stock market listing. It is expected to go public before the end of this year, for which it has appointed financial advisors to explore a direct listing on the New York Stock Exchange. The company said that in the last year, its operating losses widened, but the revenue saw a significant rise. Going public would provide the company with enough funds for operating and adding new features to its platform.
Spotify’s key competitor Apple Music doesn’t have a comparable free tier, which is the main reason the reach of Spotify is far wider than that of Apple. Thus, while Apple stands at a mere 27 million subscribers, Spotify has over 60 million paid and 80 million free subscribers. Once enough funds are raised, the company hopes to improve its revenue sources from ads.