Spotify has officially confirmed that it has more than 3 million subscribers who pay for its premium streaming service.
According to chief content officer Ken Parks (via NME), one in five Spotify users are now happy to pay the monthly subscription fee. It is a significant leap from last March, when only 5% of users paid for the premium service.
In the US, $5 gives listeners uninterrupted ad-free access on a desktop computer. $10 lets users access Spotify from smartphones and save playlists offline.
Spotify's popularity has surged in recent months. Its US launch last July helped it reach 2 million subscribers by September. Later, a tie-in with Facebook vastly increased new sign-ups.
Despite its growing popularity - or perhaps because of it - some artists are choosing to avoid streaming their new albums in case it affects 'traditional' sales.
Both Adele and Coldplay kept their newest albums off Spotify, though Coldplay are expected to publish "Mylo Xyloto" to the streaming service eventually. In our article 'Should Your Band Give In To Streaming?' we discussed the benefits of holding off a submission to Spotify until regular album sales die down.
Universal, however, do not believe it is worth holding off a Spotify release. Its vice president of digital Francis Keeling said these artists risk alienating their fan base if they do not conform to new streaming trends.
"Over time, we're trying to convince our artists that streaming services are the right thing to do and these services should be supported," he told Paid Content.
Keeling may be biased, as the major labels are believed to hold a major share in Spotify revenues after early investments in the startup.
Which begs the question, what are the majors doing with all the extra income from 3 million subscribers who are paying $5-10 per month?