Spotify has reached the impressive landmark of three million Premium subscribers, meaning 20 per cent of its total user base are now paying customers.
The Swedish streaming Goliath notes that the figure is up from 2.5m in November and 2m in September, suggesting it is enticing subscribers at a rapidly increasing rate.
Overall, the ratio of paying customers to ad-supported users is up 15 per cent since the company reached its first million Premium subscribers in March last year.
The company's chief content officer told the FT that it had succeeded in converting users over to Premium subscriptions, thanks largely to free 30-day trials across the various territories.
Conversion and engagement
Ken Parks said: "We have an enormous internal effort to drive conversion and engagement with the service. We are very focused on growing in our existing 12 markets as well as expanding in other markets."
Parks defended the "freemium" model which has allowed Spotify to re-write the rulebooks when it comes to digital music and said that artists should see greater benefits in the long-run.
"This is a healthy model," he added. "As it scales it gets better for everybody."
He also pointed out that half of Spotify's paying customers are under 30 years old, calling it a "remarkable" achievement as they were "generally hard to montetise."
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