Spotify is now available in Brazil.
After reports that the online streaming service, which had been available in the country as an invite-only trial version, was gearing up to launch in the eighth largest market in the world (and the biggest South American market), Spotify posted an announcement to its blog Wednesday afternoon. Brazil, which has thus far been dominated by streaming platforms Rdio, Deezer, and Muve Music, will be Spotify's 57th market.
The news comes shortly after Spotify revealed a paying subscription base of 10 million out of 40 million monthly active users, up from 6 million in March of 2013, the last time the company made public its user numbers. There has been much speculation on possible Spotify IPO following a $200 million credit line the company obtained at the end of last year. The music streamer has been valued upwards of $4 billion.
Spotify founder and CEO Daniel Ek recently attributed Spotify's recent growth to the roll-out of its free mobile service at the end of last year, which now brings in 80% of all subscribers.
Earlier this week, Spotify reported a security breach in its Android app. Though only one user reported unauthorized access and no intrusions on his personal and financial information, the company advised Android users, which make up a substantial part of Spotify's global base, to upgrade their software as a security precaution.
Another possible threat to Spotify's leading market share, is Apple's $3 billion acquisition of Beats Electronics, which includes its music streaming service on Wednesday afternoon (May 28). Shortly thereafter, Beats Music extended its free trial (to 14 days as compared to Spotify's 30 days) and lowered its subscription price for yearly subscribers in the U.S.: at $99.99 per year now, it averages out to about $8.33 per month, cheaper than Spotify's $9.99 per month.
Yet Ek doesn't seemed concerned about this encroachment into Spotify's No. 1 market, the U.S., which has grown by 3 million subscribers since launching in July 2011, according to people familiar with the numbers. Of the Apple-Beats deal, Ek told Billboard, "I’ve always assumed Apple would offer a streaming service at some point -- but we’re focusing on building the best possible product and feel pretty good about that. Users know the difference between something that really is the best product and not something that’s just bundled in -- and 10 million subs is a good indication of that. We’re not fighting over market share here. The music industry is still smaller than it should be. And in the UK, we’re seeing that streaming (and we) are already growing the overall pie."