SPOTIFY: $55 BILLION BY 2020 11 SUBSCRIBER COUNT 94 40 100 80 60 20 40 20 5 3 0 12 0 2009 2010 2011 2012 2013 2014 2015 2016 2017* Yearly Subscriber Additions Months to Add 10M Subscribers *2017 GP Bullhound analysis Spotify’s latest public figures touts 140 million subscribers (June 2017) and over 60 million premium subscribers (July 2017). In May 2014 the first major milestone was reached when the firm announced it had amassed 10m premium subscribers. Since then the time needed to add 10m premium subscribers has decreased significantly from 94 months to three months. The user growth has been explosive to say the least. Apple announced in the September that the firm had surpassed 30 million premium subscribers – a milestone that took the firm two years to reach. For reference - it took Spotify just shy of 10 years to reach 30 million premium subscribers. The two achievements are not perfectly comparable as Apple Music’s integration with Apple products significantly helped fuel the growth and the music streaming industry had evolved considerably since Spotify’s debut. Apple is however closely mimicking the growth trend of Spotify. We do not anticipate Apple will outgrow Spotify any time soon. 60 30m 40 20 0 2015 - H1 2015 - H2 2016 - H1 2016 - H2 2017 - H1 Spotify Apple Music