Spotify by the numbers
With the launch of Spotify Artists, the company also revealed some new numbers on the current state of the streaming service.
- Spotify has now paid out a total of more than $1 Billion USD in royalties to-date, out of which US$ 500 million was paid in 2013.
- As of March 2013, Spotify had over 24 million global users. 18 million of them were using the free service and 6 million were using the premium service.
- The average Spotify user is currently worth approximately US$ 41 annually. Counting backwards gives us that a free user is worth approximately US$ 14.66 per year and a premium user is worth $ 120 per year. Free users pay for their consumption by viewing and listening to advertising.
In other words, a premium user is worth over 8 times more than a free user. And even though premium users just make up for 25% of the total number of users, they generate 73% of the total revenues.