Music streaming service Spotify announced another major milestone Thursday, revealing on Twitter that it now has 50 million paying subscribers. This means that Spotify gained 20 million subscribers in a single year, and has is more than twice the audience size of Apple Music.
The news comes just one day after Apple CEO Tim Cook reiterated during the company’s annual shareholder meeting that Apple Music service has more than 20 million paying customers. Spotify CEO Daniel Ek announced in March of 2016 that the service had hit 30 million subscribers.
Spotify’s continued momentum could help the company win some goodwill with the major music labels, which have been pushing the service to restrict free and ad-supported listening. However, it doesn’t solve some of Spotify’s fundamental business issues. The company is paying dearly for its music licenses as well as customer acquisition, and has yet to turn a profit.
And the clock is ticking for Spotify’s eventual IPO: The music service raised $1 billion in debt financing a year ago under conditions that significantly raise the cost of the loan the longer it waits to go public. Perhaps, reaching the 50 million milestone could help Spotify to make that case for a public offering even in light of its losses.