Spotify now has 3 million paying users

Spotify, giants in the streaming music business, has revealed to FT that it has reached the landmark of 3 million paying users only two months after it reached the 2.5 million mark.

It now has more than 20% of its total user database in the paid users category. This 20% market comes as very good news for Spotify given the fact that it was 15% in March 2011.

This clearly points out to the fact that Spotify has been successful with its carrot and stick techniques for getting fermium ad-funded users to upgrade.

In their current model Spotify allows users to listen to ad supported music for free but the amount of free music drops down to 10 hours a month after six months. It charges $5 or $10 per month for ad-free music depending on whether mobile is included.

Spotify is now available in 13 countries and has competition from 24/7, Aspiro, Deezer and We7.

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