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Spotify Flying High

They said it was the end of Spotify. When the ad-supported streaming music service announced swingeing new restrictions on its free service earlier this year, many online users swore they'd stop using the service and never, ever pay for it.

Spotify's new restrictions were tough. Instead of listening to unlimited music for free, in exchange for listening to ads, users could only listen to 10 hours per month. And any one track could only be listened to five times.

But it seems the gamble has worked. According to some leaked internal documents, the service picked up a whopping 520,000 paying subscribers between March and June this year, a 50% increase on its existing subscriber base. The new restrictions were introduced in April, suggesting most of the new paying users were responding to the new restrictions.

Mind you, some of those threatening to leave clearly weren't bluffing. The overall user figure for the service dropped in the same period, from 5.75 million to 4.67 million. Still, as CNET points out, 'half a million customers paying for the service is a lot more valuable than a million freeloaders.'

Combined with Spotify's apparently successful launch in the US, this news suggest Spotify is on a roll. Hopefully it'll be able to translate all this success into profits at some point...

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