Streaming music provider Spotify has responded to the threat posed by Apple Music the only way it can: raising more money, growing its user base and preparing for battle.
Spotify now has 20 million paid subscribers and more than 75 million active users, the company announced in a blog post on Wednesday. Spotify noted that it took five-and-a-half years to get to 10 million paid subscribers, and just one year to get to 20 million. In May 2014, Spotify had 10 million paid subscribers and 40 million active users..
The news came just after the Wall Street Journalreported that Spotify has closed a funding round for $526 million on an $8.53 billion valuation. Spotify has yet to confirm that amount, but Sweden-based telecommunications company TeliaSonera said on Wednesday that it invested $115 million in Spotify in return for a 1.4 percent stake in the company. That amount and stake extrapolates to an approximate $8 billion valuation.
In the US, Spotify has been running a promotion offering its subscriptions -- typically $10 a month -- for just 99 cents for three months. Spotify didn't immediately respond to a message asking for a characterization of the compay's 5 million new subscribers in the context of deeply discounted members.
On Monday, Apple unveiled its new Apple Music streaming service, born out of its acquisition last year of Beats Music.
Spotify did not immediately respond to a request for comment.
Spotify now has 20 million paid subscribers and more than 75 million active users, the company announced in a blog post on Wednesday. Spotify noted that it took five-and-a-half years to get to 10 million paid subscribers, and just one year to get to 20 million. In May 2014, Spotify had 10 million paid subscribers and 40 million active users..
The news came just after the Wall Street Journalreported that Spotify has closed a funding round for $526 million on an $8.53 billion valuation. Spotify has yet to confirm that amount, but Sweden-based telecommunications company TeliaSonera said on Wednesday that it invested $115 million in Spotify in return for a 1.4 percent stake in the company. That amount and stake extrapolates to an approximate $8 billion valuation.
In the US, Spotify has been running a promotion offering its subscriptions -- typically $10 a month -- for just 99 cents for three months. Spotify didn't immediately respond to a message asking for a characterization of the compay's 5 million new subscribers in the context of deeply discounted members.
On Monday, Apple unveiled its new Apple Music streaming service, born out of its acquisition last year of Beats Music.
Spotify did not immediately respond to a request for comment.
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