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Spotify hits 83 million paid users as the race with Apple Music rocks on

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As Apple Music continues to gain ground in the music streaming industry, Spotify is charging full steam ahead in hopes of staving off the iEmpire’s relentless onslaught. And on Thursday, July 26, it seemed as though the Swedish service just may have succeeded — for now. In its second earnings report ever, the company announced that it had reached 83 million paid subscribers, which represents an increase of 8 million members since May. This is toward the high end of what investors were hoping for, and keeps Apple Music (which at last count, had about 40 million paid subscribers) at bay.

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A significant portion of Spotify’s recent growth has been attributed to its Family Plan program, as Spotify notes that folks who sign up through this option tend to remain members for longer than individuals. After all, it’s probably harder to tell your siblings, parents, and children that they’re all losing streaming music access than it is to just cut yourself off.

In total, Spotify saw its paid user numbers increase by 30 percent, and its freemium (or ad-supported) user numbers grow by 40 percent.

Spotify’s growth may also be due in part to its $13 Hulu Bundle, which made its debut in April. As its name suggests, the bundle grants customers access to a standard Spotify Premium subscription (which is normally $10 per month), and Hulu’s Limited Commercials plan, which would otherwise be $8 a month. That means that with the bundle, you’re saving $5 a month — not a bad way to take care of all of your entertainment needs at once. Spotify said that subscribers through this plan were also more likely to stick around, and as a result of its success, Spotify says that we might be able to look forward to similar offerings moving forward.

Spotify has quite a rosy outlook for its future, forecasting its subscriber numbers to reach somewhere between 93 million and 97 million, and active users to hit in the range of 199 million to 207 million. While this would represent an impressive rate of growth, it’s perhaps not as strong as that of Apple Music, who is continuing to add paid customers at a rapid pace. Indeed, recent reports have suggested that the much younger Apple service already has more users in the U.S. than its chief rival, which could spell trouble for Spotify moving forward.

Lulu Chang
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