Spotify Remains Tops in Music Subscriptions

STOCKHOLM—Swedish music-streaming service Spotify AB on Wednesday said it had reached 40 million paying subscribers, up a third from six months ago.

"40 is the new 30. Million," Spotify's co-founder and Chief Executive Daniel Ek tweeted. A spokeswoman for Spotify confirmed the news.

By crossing the 40 million threshold, Spotify confirms its position as market leader in an increasingly crowded music-streaming market.

Apple Inc.'s Apple Music, Spotify's main competitor, launched in June 2015, said earlier this month it had 17 million paying users. Tidal, the streaming service owned by rapper Jay Z and others, in June said it had expanded its user base to 4.2 million paying subscribers.

On Tuesday, Pandora Media Inc. said it has signed direct licensing agreements with major record labels including Sony Corp.'s Sony Music and Vivendi SA's Universal Music Group, in a move seen pushing the streaming music provider closer to offering an on-demand service.

Unlike rivals Apple Music and Tidal, Spotify also offers a free service, in which music is interrupted by ads. The company didn't separately provide an update on the number of its free users. In June, Spotify said it had 100 million active users in total.

Like most of its competitors, Spotify charges customers about $10 a month for unlimited music streaming services.

Write to Matthias Verbergt at [e-mail]

(END) Dow Jones Newswires

September 15, 2016 01:45 ET (05:45 GMT)

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