London, Aug 23 (ANI): Digital music service Spotify is earning 80 percent of its revenue from only eight percent of its users, according to the music site's latest figures.
The popular Swedish music service, which released its year-end financial report for 2011 and the figures, revealed that the majority of its users do not make Spotify any money.
The report claimed that in total Spotify made 148 million pounds in revenues during 2011 and is enjoying some success with a new revenue stream: paid-for downloadable content.
According to The Telegraph, by the end of 2011, Spotify had 32.8 million registered users, but only 2.6 million were the paid subscribers to one its two 'paid for' offers.
Consequently the remaining 30.2 million customers were using the free advertising-support service, which meant that eight percent of the user base brought in 83.5 per cent of Spotify's total revenue. The majority of the rest came from advertising revenue, the paper said.
The company has experienced 300 percent growth year on year in its subscription revenue and also a 30 percent rise in its advertising revenues, it added. (ANI)
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