As reported by All Things D, Spotify is officially a hit in the U.S., but converting free accounts into paying customers continues to be a challenge. The report says Spotify has 1.4 million U.S. users, but only 12.5 percent pay for the service, leaving only 175,000 paying customers. It sounds like a bad headline, but honestly is anyone really surprised?
It’s a tough lesson that in this version of the music industry, you can change the product but you can’t change the culture. It’s also not a number that Spotify would scoff at either–their European numbers aren’t much better, only 15 percent are paying customers but with a much larger total user base.
In due time, Spotify will expand its U.S. market and still be successful from a user acquisition and perhaps a revenue perspective even if the statistics aren’t currently spectacular.