Tonight, Spotify boss Daniel Ek admitted that less than 10% of Spotify subscribers had upgraded to the Premium version.
Spotify claims over 1 million subscribers but only a maximum of 90,000 of them are stumping up £10 a month for the ad-free Premium service. That means it brings in just £900,000 a month – not small change but not enough to make the service profitable.
It's likely that the Spotify Mobile app on Android and iPhone will increase those numbers but Spotify is keeping just how much close to its chest.
Ek told the crowd at the Glasshouse that Spotify could be profitable if it "chose to be" but that he's focused on developing the business.
I suppose that for most users, the occasional ad is a small price to "pay." I would say though that the fact that there are a million users is not insignificant. That represents the leading edge of a constituency that is going to get used to hearing whatever they want, whenever they want. And if Apple ever approves the iPhone app, you can add "wherever" to the equation.