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Apple approves Spotify for iPhones

Apple has approved Swedish firm Spotify’s iPhone application, which will allow users to stream music to their handsets.

Apple approves Spotify for iPhones
Spotify CEO Daniel Ek

While the application will be free, users will have to sign up for a premium Spotify subscription, which costs 99 kronor ($14) per month.

The Swedish music streaming service has been considered a competitor to Apple’s market-leading iTunes store, because it offers a comprehensive, and growing, free library of millions of songs.

Spotify submitted its application to Apple in July, and it was widely anticipated that Apple would reject the advance, due to Apple’s dominance of the digital music market.

“We’re obviously delighted with the news,” Spotify communications manager Jim Butcher told The Local.

The new application is designed to search for new music, and will allow users to temporarily store playlists on their phone for use when there is no connection. It will also allow users to stream playlists, according to a BBC report.

Spotify’s founder and CEO, Daniel Ek, told the BBC that he expected that the new application would bring a big surge in premium subscribers.

The service, which was launched last year, has more than one million Swedish users, and 4.5 million users across Europe, Jim Butcher told The local.

Free Spotify accounts were initially available by invitation only in order to manage the growth rate of the service, however Spotify opened free registration in the UK in February this year. The company has not indicated when free accounts will be available in Sweden. Paid premium subscriptions are open to all.

In an apparent effort to allay concerns about capacity, Ek assured users that Spotify is working on upgrading Spotify’s systems. “We’re scaling up the systems because response has been tremendous even before the app is available,” he told the BBC.

As well as giving users access to the imminent new Spotify service through the iTunes application on their handsets, Spotify’s premium service allows users to run Spotify without advertisements, from anywhere in the world.

And when can music-hungry consumers expect the Spotify application to appear in their iPhone Apps store? Spotify is being tight-lipped: “Soon!”

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BUSINESS

Spotify reports strong growth in users as it announces price rise

Spotify on Tuesday reported a bigger-than-expected rise in active users at the end of the second quarter, a day after the music streaming giant announced price increases for its premium service.

Spotify reports strong growth in users as it announces price rise

The Swedish company, which is listed on the New York stock exchange, said it’s total active users rose 27 percent to 551 million year-on-year, or 21 million more than it expected. The number of paying subscribers also rose, with a 17 percent jump to 220 million — three million more than expected.

On Monday, the company announced it was raising its prices for premium subscribers “across a number of markets around the world,” following in the footsteps of similar moves by competing music services from Apple and Amazon.

Despite the boost in users, Spotify reported a bigger operating loss of 247 million euros ($273 million) in the second quarter, compared to a loss of 194 million euros for the same period a year earlier.

The company said it was “primarily impacted by charges related to our actions to streamline operations and reduce costs.”

In early June, Spotify announced it would be cutting some 200 positions working with podcasts.

That move came after a January announcement that Spotify was cutting around 600 jobs — equalling about six percent of its workforce — following similar moves by other tech industry giants.

Spotify has invested heavily since its launch to fuel growth with expansions into new markets and, in later years, exclusive content such as
podcasts. It has invested over a billion dollars into podcasts alone.

In 2017, the company had around 3,000 staff members, more than tripling the figure to around 9,800 at the end on 2022.

The company has never posted a full-year net profit and only occasionally quarterly profits despite its success in the online music market.

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