Running from a few weeks across the Atlantic, the audio streaming service Spotify starts in fine style. The Swedish company, which now has 1.6 million subscribers in Europe, has already grossed U.S. 175,000 subscribers to 1.4 million users. The news is not official and comes from All Things Digital.
175 000 subscribers, between 875,000 and 1.75 million extra per month
175,000 subscribers to 1.4 million users, this means that the conversion rate of Spotify USA is 12.5%. However, Spotify has battled for years in Europe to 1.6 million paying members. If these figures are confirmed, it would prove that the service is on track.
Indeed, Spotify is facing stiff competition. On the one hand, there are direct competitors like Grooveshark or RDIO. On the other, there are of course competitors to more or less different services such as iTunes (Match), Rhapsody, Pandora, Amazon MP3, Music Google, etc..
Spotify has signed an exclusive partnership with Motorola at launch, knowing that it is the third largest seller of mobile across the Atlantic behind Samsung and LG. And like its agreements in Europe, a partnership with a mobile operator could accelerate its rise.
The question is whether the majors will be content to this situation. Otherwise, they will impose their conditions, either side of tariffs or limits the free version. Let us recall that the free version of Spotify the U.S. has no limits, unlike in Europe. This probably will not last long.