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Spotify hits 3m paying users

Tim Green
Spotify hits 3m paying users

More than 20 per cent of total user base.

The streaming music giant told the FT that it had reached its new landmark two months after passing the 2.5m subscriber base.

And the 20 per cent stat is particularly gratifying for Spotify, given that the ratio was 15 per cent in March 2011.

That suggests the firm's many carrot and stick techniques for getting fermium ad-funded users to upgrade are working.

The current model lets users listen to ad-supported music for free but after six months, the amount of free music drops to just ten hours per month.

For ad-free music, it charges either $5 or $10 per month, depending on whether mobile is included.

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Spotify is live in 13 countries including the US. It's getting all the publicity but faces strengthening competition from the likes of Deezer, We7, Aspiro and 24/7.

And this week Rhapsody announced that it is taking control of Napster's operations in the UK and Germany.

Tags: Music , streaming , napster , spotify , Milestones , spotify premium

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