Spotify could have as many as 2.5 million subscribers by the end of the year, claims Enders Analysis.
The music streaming website, which has just passed the 2 million subscriber mark in Europe and the US, is expected to continue to attract new customers, with the increase in smartphone adoption.
According to Enders Analyses: “Smartphone adoption and partnerships with MNOs and ISPs have proven a key driver of subscription in Europe for Spotify, which lacks a telecoms partner in the US. We think subscription is profitable.”
Enders Analysis also claimed that Spotify’s lower useage caps on its free-to-use area should help ‘compress’ its total losses this year in comparison with to the £25m reported last year, despite its launch in the US.