Example of another successful freemium offering: Pandora Radio
Ads revenue form free users: $278.2 million x 4 quarters a year = $1,113 millions a year
Subscription revenue from paid users who want to skip ads: $68.9 million x 4 quarters a year = $275.6 million a year
Pandora’s advertising revenue rose nearly 5 percent to $278.2 million in the second quarter
The company reported subscription revenue of $68.9 million
It's an internet radio station so people are used to free radio music with ads. It still has 5.19 million paid subscribers who pay to skip ads to listening to internet radio.
Spotify freemium for on-demand music streaming is the complete opposite, in which subscription revenue is a few times greater than ads revenue.