Spotify Success: 70,000 Paying Users In First Week Of US Launch

Spotify’s American dream has started well as they have managed to sign up over 10 million users in the first week of trading. It had been an obsession for the Swedish based music service to take their business across the pond, and it was when they were reportedly joining forces with Facebook that their expansion was pushed through.

According to reports from Mashable, Spotify has managed to sign up 70,000 users for their paid service. As you may know, Spotify offer a free and subscription based premium service. It is widely expected that Spotify will provide Facebook with their music streaming service, in exchange for Facebook’s helping hand in getting their offerings global. No official announcement between the 2 has been made but it has been confirmed they are negotiating.

Previously Spotify had only been available to European residents, with a large user base of 10 million, with 1.6 million paying for the service. The spectacular response from Americans prompted Billboard to call their figures into question. Spotify reportedly replied saying that they are happy that the service so far has exceeded expectations and that they do not want to talk figures at the moment.

Spotify’s US release has not only worked wonders for them, it has also had an impact on some of their rivals. Internet radio service Pandora has suffered a drop in the price of its stock, Forbes has reported. The price of Pandora’s stock is estimated at $10, with this in danger of being hit even harder when Spotify launch their social music service with Facebook. It looks to be a done deal so all we have to do now is wait.

In a pre-launch document that was leaked, Spotify claimed they were targeting an ambitious 50 million US members in the first year of launch. If the reported figure of 70,000 paying users in the opening week is true, then Spotify could be well on their way to achieving this figure. It still remains to be seen if these figures from record labels and publishers are accurate. They do seem suspiciously successful for a relatively unknown company venturing out into the US, but the quality of their service has the potential to warrant this amount.

If Spotify can thrash out this deal with Facebook then it will boost their appeal even more. Not only are they providing a service through the world’s largest social networking site, they are also offering a cloud based service for your music library. Spotify also has wireless device syncing technology which takes their offerings up to the level of Apple and Google. Can Spotify reach their target of 50 million American users in their debut year?