We like Spotify as more than friends, but man, it's been doing nothing but losing money for a while now. So it's pretty good—and really surprising—news that it's now got three million people paying for its service.
That three million figure is actually more impressive because it's 20 per cent of everyone using Spotify, which is a bump from the 15 percent that was paying for the service back in March of last year. It's pretty dang impressive that it's managed to increase that conversion rate while gaining more total users, but that might be due in part to the limits placed on free users after 6 months of use that recently went into effect in the US.
Spotify isn't actually as broke as it looked with its big deficits; a lot of that came from the huge amount it had to pay to launch stateside. At the time, a lot of people were pretty sure that the idea of paying labels per listen regardless of if a user was paying or not was nuts. And maybe it was. But while Spotify's not all the way out of the woods just yet, it's good to see that the weight of scale hasn't totally crushed it just yet. [Financial Times]