Xbox Live has hit 35 million users globally, Xbox Live marketing manager Robin Burrowes has confirmed.
Speaking with Joystiq at Gamescom in Germany, Burrowes said: "Our audience growth is up to 35 million people globally across those 35 countries on Xbox Live itself."

Five million of those users jumped on board since last January, he said, adding that this rapid grows is in part thanks to the launching of Xbox Live in nine new countries in late 2010.

Burrores wouldn't be pushed into breaking down that number between Gold subscribers and free accounts, but he did say that MS earns "more revenue from the transaction space (XBLA, Avatars and other digital sales) than the subscription space."

Xbox Live has suffered a spat of issues recently, with a US user suing the firm for allegedly double billing for the service, and a recent glitch causing 1000s of points to be handed out for free.
http://www.computerandvideogames.com/316165/xbox-live-hits-35-million-global-users/