Streaming music app Spotify has breached a milestone, today, announcing it now has 100 million Spotify Premium users. This brings the company’s total user base to 217 million, meaning that nearly half of its users are willing to pay for the service (while 117 million still enjoy the free, ad-supported tier). And upon announcing this, shares of Spotify jumped almost 5 percent.
Spotify’s climb to this level has been steady but it might have been its recent February launch that helped to push it over the top. The app only launched in India at the end of February but the audience in that country is growing very quickly. As a matter of fact Spotify says more than one million users signed up for the service in the first week alone; which has actually doubled, and then some, over the next four weeks.
Spotify has also launched in the Middle East and Africa, over the past several months. And the European market actually contributes 40 percent of total subscriber share with the United States following close behind at 30 percent of total subscriber share.
However all of this momentum is still not really turning much of a profit, if any at all. Even as the subscriptions climb, Spotify managed to lose about $158 million last quarter. Still, this appears to fare better than its losses from the same period last year—about $188 million. But it should also be noted that, at least, some of these losses are due to two reasonable things: employees getting bigger bonuses as the stock price grew, and the company paying its fair share in taxes.
All that said, Spotify now says it does not expect make any dramatic new profits in the immediate future. However, the streaming app expects to renew strength on the global music market thanks to deals with Google, Samsung, and Hulu. In addition, Spotify is looking to stabilize itself in the growing podcast market. Podcasts have very low overhead, but they all need a place to find an audience, and Spotify has the perfect platform for this.
Still, Spotify remains the leader in this market, with roughly twice the number of subscribers of Apple Music, its nearest competitor.