Peter Kafka at AllThingsD has gotten his fingers on some interesting stats from Spotify that show the European music service’s progress in the U.S. since launching on our shores a few weeks ago: Spotify has 1.4 million users for its free version, and 175,000 paying customers, according to his source.

It’s the second number that’s most interesting. The mark of 175,000 paying customers is still well behind the more than 800,000 paying subscribers to the Seattle-based Rhapsody music service. But Rhapsody has been operating in the U.S. for years, previously as part of RealNetworks. Spotify has been here for less than a month.

The key question is how many people using the free version of Spotify will convert into paying customers over time.

Spotify’s $9.99/month premium service offers enhanced sound quality and unlimited music streaming on mobile phones, not just computers. Its mid-tier offering is $4.99/month, with the primary benefit over the free version being the absence of ads.

Rhapsody’s standard $9.99 monthly plan offers unlimited music online and on one mobile device. Its $14.99/month plan supports up to three devices. The company offers a 14-day free trial of its service, but not a perpetual free version as Spotify does.

Previously: As Spotify plots U.S. invasion, Rhapsody fires shots and touts growth

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  • Guest

    Congratulations to Rhapsody for continuing to win the past! I hope they can win the future.

  • Stephen Harrison

    I made the jump last month. I was tired of having log in issues and more buffering than I would like with Rhapsody. Spotify has been stellar so far.

  • Matt

    I use the Zune Pass and have been pretty happy with it … I’m not sure what Microsoft’s plans are for the service which has me a little worried.  It can be a bit annoying with it dropping songs while streaming and flat out just not have new releases available on the Zune Pass on release date.

    I’ve been thinking of installing a few of the Sonos Play:3 in my house, if I do that I might make the jump to Spotify for the “it just works” dealio.

  • Jonah

    Love Zune Pass so far…interesting no mention in this article, but not surprising since it seems to be a afterthought.

  • Guest

    I’ve been using Rhapsody for the past 6-7 years and I would never think of switching.  It’s funny to me that the big craze right now is ‘music in the cloud’.  Why would I want to buy each track or album and store it ‘in the cloud’ when I can listen to just about any song I want, whenever I want, wherever I want for one monthly fee without having to buy each song or album?  Rhapsody has perfected this.. so hats off to them.  Aside from slight pricing differences, Spotify is exactly what Rhapsody has been for at least the last three years.  Keep up the good work Rhapsody!

  • Guest

    The folks who think Spotify is the “wow, that is cool, I never realized that” are the same folks who follow the “buy high, sell low” stock purchase approach, buying stocks when everyone is talking about them, which at that point is pointless because the price is at a high.

    The folks who jumped on the Rhapsody/Napster/Zune bandwagon a few years back are now kicking back saying, “I can’t believe these people are so clueless, we’ve had this for years”.

    The writers/journalists who write about Spotify as having discovered a new planet simply demonstrate their ignorance and lack of research on the topic.

    • lol

      You definitely have that right. Spotify is nothing new. Many paid services have existed longer, offer a better library, and almost certainly better support. All three of the major services kick Spotify to the curb when it comes to their library.

      Spotify is also NOT the first to offer a free service legally. How quickly journalists forget Imeem and SpiralFrog.

  • Derek

    Been using Rhapsody for the past 6 years and would never change. No need to I have nver had any problems with Rhapsody. But they need to get the Chilli Peppers and Metailica and some more Pearl Jam!!!!

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