March 8, 2011 at 10:57 am

Spotify Reaches One Million Paying Subscribers

spotify one million users

Spotify, the freemium on-demand music service available in Europe, has attracted its millionth paying customer, the company announced on Tuesday.

This major milestone, yet to be reached by any U.S.-based music subscription service, lends credence to the idea that offering people up to 20 hours of free, on-demand music per month on their computers is enough to convince them to pay a monthly subscription fee of ten euro (about $14) for an ad-free, higher-audio-quality, mobile-accessible version of the service, or 5 euro ($7) for an ad-free desktop version.

‘It seems like only yesterday we were hatching ideas for a new music service in a tiny office-cum-apartment with a broken coffee machine, and the party we threw having reached one million users [including non-paying ones] almost two years ago today was one to remember,” said Spotify CEO and co-founder Daniel Ek in a statement.”So it’s with a sense of real pride and excitement that we can announce a new milestone today, having welcomed our millionth paying subscriber to the service. It’s a testament to our fantastic users who continue to support us and spread the Spotify word, either by telling friends or sharing some of the 200 million playlists that you’ve put together so far.

From everyone at Spotify, we’d like to give you all massive thanks. We’ll continue to focus on providing you with the best music service possible, and look forward to adding even more cool new features over the coming months. What’s really exciting is that this is only the beginning. Thanks for listening!’

In other recent Spotify news, the company recently attracted additional investment valuing the company at approximately $1 billion.

However, it has notoriously yet to launch in the United States, garnering as many articles for its failure to launch here as the Beatles did for their failure to distribute their music through Apple iTunes. The Beatles joined the rest of the world on iTunes in November, so perhaps a U.S. version of Spotify isn’t too far off either.

Smart money we’ve spoken with off the record appears to be divided, with some convinced that Spotify will launch next week at SXSW, and others claiming that any potential U.S. launch is still months away.