Spotify added 20 million paid subscribers in less than a year, accomplishing a benchmark that Apple Inc's (AAPL) - Get Report Apple Music has taken more than a year and a half to do, TechCrunch reported.
Spotify now has 60 million paid subscribers, more than double Apple Music's 27 million. The music streaming service has managed to compete against one of the world's most competitive companies, suggesting its move to focus just on music streaming is working. Apple is a tech company with a streaming service on the side, but Spotify is singularly focused on music services.
The good news comes as Spotify prepares for a direct listing, where it intends to go public without an IPO. Insiders will sell shares to the stock market instead of the company. The move has been met with widespread skepticism.
The direct listing could mean Spotify will miss out on the cash raised from an IPO, but a secondary offering could raise funds at a later date. The direct listing is said to be happening before the end of the year.
Apple stock traded slightly up premarket.
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