Online music streaming service Spotify signed up it’s 10-millionth paid user last week, reports Bloomberg.
It also has 30 million free users, which the company generates revenue from with ads.
While the site, which charges $10 a month to stream unlimited music, is considered top in its class, its business model is lacking. Spotify pays royalties to artists every time their songs are played, meaning that as Spotify gets more subscribers, it can’t benefit from economies of scale.
Spotify may also be preparing to go public, reports Bloomberg, though it hasn’t confirmed any plans.
It’s also facing increased competition. Rival service Beats is rumoured to be selling itself to Apple.