Spotify Nears 2 Million Paying Users, Profitability

Spotify has 1.9 million paying subscribers among its 6 million active users in the US and Europe, according to new reports. Some analysts believe that the company could show its first profit when it publishes financial results later this year. 

Industry analyst Martin Scott of Analysys Mason forecasts that Spotify will report revenues of $85.7 million for the year to December 2010, compared to $18.9 million in 2009. 75% of Spotify revenue comes from paid subscriptions and 25% from advertising revenue.

Why the optimists outlook?

Spotify launched in the US in July an now reportedly has 200,000 paying customers, according to the UK's Guardian. Later this year Virgin Media UK will offer its 5 million UK customers Spotify subscription for both TV and computers.