Spotify announced on Thursday that it had reached 50 million paid subscribers, growing by a huge 25 percent in just six months.
Spotify, which has not yet shown a profit as it spends to grow internationally, has extended its lead over its closest rival, Apple Music (NASDAQ:AAPL) – still a way behind Spotify.
The company revealed in June that it has a total of 100 million users, including on its free advertising-backed tier.
The Swedish music streaming service is one of Europe’s most highly valued venture-backed startups and is considering a potential U.S. stock market listing.
Spotify has been working hard to hold its dominant position in the on-demand streaming industry as more competition, such as SoundCloud and Amazon, hope to capture subscribers.
Whilst Apple Music has gained new subscribers through “exclusives” — restricting certain popular albums for a period of time — Spotify has looked into broadening content with original content and podcasts.
The Swedish streaming service may also launch a new Hi-Fi music tier, the Verge recently reported. The new Hi-Fi music tier would be charged at an additional £5 a month. Spotify already offers a family package which grants the premium subscription to up to six users.
“We are always testing new products and offers but have no news to share at this time,” a Spotify spokesperson said.
Apple launched its music service less than two years ago and had 20 million subscribers in December, a long way behind the 50 million paid subscribers Spotify has gained.
The music industry continues to grow at a healthy rate, and 2016 showed us that the landscape is evolving even more quickly than we have seen with other format shifts,’ said David Bakula, senior vice president of industry insights at Nielsen Music.