Rhapsody today announced that it has surpassed over 1 million paying customers. The on-demand streaming music service, which counts services like Spotify and MOG as competitors, says it currently serves up more than 10 million songs a day to its users

"We've accomplished quite a bit over the past decade, so it's no small statement to say that 2011 was probably our biggest year yet," said Jon Irwin, president of Rhapsody, in a statement.

Irwin told his team that if the company topped one million paid subscribers, he would shave his head.

"It was probably the best free haircut I've ever had," Irwin said.

In addition to surpassing the one million mark, Rhapsody also launched a new, social music experience in September, completed an acquisition of Napster in November and celebrated its 10th anniversary in early December.

Rhapsody is available on more devices 60 devices. The company says that 2011 was the first year that a majority of the playback came on a device other than a PC. Fully 40 percent of playback was on a mobile, a trend the company said it expects to continue.

"The next frontiers for subscription music are the living room and the car," Irwin said. "Consumers will be able to enjoy Rhapsody from even more connected audio and video systems, as well as other platforms and distribution channels-at home, in the car and everywhere in-between, domestically and abroad. This has been an incredible year, marked by several notable achievements, and we're entering 2012 with big plans to bring music to even more people, in more places."

Perhaps Rhapsody's biggest competitor, Spotify, which launched in Sweden in 2008 and only this year here in the United States, counts over 10 million active users and over 2.5 million paying subscribers.