Slacker: We're Growing Fast, Profitable On Every User

San Diego-based music streaming service Slacker has a message for the industry: you can run a digital music service, and make money. Slacker, which has been in the midst of a big relaunch since February, announced today that it has added six million new listeners to the service since its relaunch, and is gross margin profitable on every user of the service.

The music streaming service says that--unlike other digital music services--it is making money on every new listener it gets, whether they are ad-supported or a paid subscriber. That's a contrast to such competitors as Pandora, which continues to see a net loss every quarter, as it looks to balance the amount of music it streams (which costs it licensing fees) against its revenues (clicks on advertisements).

Slacker apparently has figured out a different model than the other streaming music providers, by directly licensing content from record labels and music publishers. The firm also has billing and distribution deals with wireless providers like Verizon, AT&T, Sprint, T-Mobile and U.S. Cellular, and vehicle deals with Ford, GM, Chrysler Group, Acura, Honda, Scion, Subaru and Tesla.

Slacker says of those six million new listeners, about 3.5 million of them are on mobile. The company said that, since its relaunch, it also is seeing an increase in average listening time, by 25 percent, with about 100,000 new paid subscribers joining the service.