Spotify Hits 1 Million Paying Users

How impressive is Spotify reaching the one million subscribers mark? It bests the 750,000-plus self-reported customers of U.S. subscription Rhapsody, which has been in business for eight years. Spotify is also ahead of the last known subscriber count for Napster, which reported 761,000 subscribers in its last quarterly filing before it was acquired by Best Buy in 2008. Thumbplay, which was recently acquired by Clear Channel, was reported to have just 20,000 subscribers. The figures for other new services like MOG and Rdio are unknown.

Bob Lefsetz is right.

Rhapsody/Napster/MOG, et al can’t win because they’re not free. The labels won’t allow a free service, that’s how fucked up they are. But if I let you play for free, which is how Spotify works in the countries it’s launched in, would you check it out?


And you’d be hooked.

But it would only work on the desktop. You’ve got to pay for it on your mobile. And soon, your mobile will be everything. See where we’re heading?