[alexmuller]

I must be missing something here with regards to revenue. Spotify has 15 million users, 4 million of whom are paid subscribers. So 11 million free users.

They have two paid plans: $60/year and $120/year.

If we assume the following structure:

    11000000 free users @ $0.50 ad revenue per year = $  5,500,000
     4000000 mid users @ $60/year                   = $240,000,000
           0 top users @ $120/year                  = $          0

For a total of $245.5 million in revenue, already more than reported here. And those proportions for their two paid plans are clearly ridiculous. But even if their free users provide $0 in revenue _total_, they still only have 2% of paid users on their top plan.

[reitzensteinm]

You're not taking growth into account - they're still more than doubling each year. You'd have to use the average user count to do math properly, not today's user count.

[alexmuller]

Ah, dead on! Those user figures are from August this year but the revenue is listed as 2011. Thanks.