Spotify execs are predicting that the streaming service will reach nearly 100 million users by the end of this year. Most of those users are expected to utilize the ad-supported non-premium tier of the service.
2015 seems destined to be the year of streaming music. The launch of Apple Music certainly contributed to the cultural zeitgeist surrounding music streaming services, while other highlights include the doubling of SoundCloud streams in just one year's time.
But the biggest streaming service, by far, remains Spotify, which currently boasts over 75 million users. Recent comments made it clear that Spotify execs see plenty of room for further growth. Spotify chief revenue officer Jeff Levick stated that the company expects "close to 100 million" users by the end of this year — a figure that seems startlingly aggressive, considering there are only three months to go in 2015.
Most of those users are expected to go with the free tier of Spotify's streaming service, which is advertiser-supported — as opposed to the $10-a-month paid tier that allows subscribers to avoid the ads. Though Spotify boasts that it has 20 million paying subscribers, the definition of "paid" is murky. Many of those in that count are only coughing up a dollar for a three-month trial plan, with numerous others taking advantage of discounted plans, such as the half-price plan offered to all students.
Spotify's contracts with the three major music labels – Universal Music Group, Warner Music Group and Sony Music Group – are expiring soon, and the labels have been putting pressure on Spotify to find ways to better monetize music streaming, which isn't currently providing enough revenue for the labels. While the labels would like Spotify to limit content available to free subscribers, Spotify has steadfastly refused so far.
Artists, meanwhile, are complaining that they're being cheated out of money they deserve for their songs being streamed. Recently, Lady Gaga's ex-manager Troy Carter claimed that her label, UMG, cheated the singer out of due streaming royalties. One of the songwriters of "All About That Bass," a recent worldwide pop hit for Meghan Trainor, just revealed that he was paid a total of less than $6,000 for a whopping 180 million Spotify streams of the track.
