Speaking at the Credit Suisse Annual Technology Conference in the US on Wednesday, Dennis Durkin, head of Microsoft's Interactive Entertainment Business said: "Of our 25 million members [worldwide], about half of them are subscribers to the business and pay us about $60 a year for that."
The figure means Microsoft is receiving $750 million from its members each year from subscriptions alone.
Durkin went on to detail user habits of US subscribers. Gold subscribers in the US spend an average of more than three hours a day on the service, with around 40 per cent of their time now spent using non-game related applications like Netflix and Facebook.
"This is a great opportunity for our media partners to stay connected with their customers and to sell them goods that they care about in their home," Durkin added in a report by IGN. "Whether that's game add-ons, movies, music, or clothing for their avatars, this is a very big business."
Microsoft recently introduced a Rewards Points program for Live subscribers.