Spotify Responds: “Without Free, Pay Has Never Succeeded”

feedthealligators

From this morning’s Financial Times…

quotation-marks

The Spotify business model relies on attracting users to a free service that offers a selection of music but with limited functionality, with the aim of converting those users to paying subscribers. Spotify generates some revenue around the free service but makes more via paid subscriptions.

A person close to Universal says there was clear evidence the availability of free music on Spotify was hurting digital downloads from stores such as Apple’s iTunes. “The market data really speaks for itself,” the person said. “It’s clear that the key to success for artists, consumers and Spotify alike is developing an offering that drives more free users to the paid tier.<!–/*
* The backup image section of this tag has been generated for use on a
* non-SSL page. If this tag is to be placed on an SSL page, change the
*   ‘http://72.52.81.231/revive/www/delivery/…’
* to
*   ‘https://72.52.81.231/revive/www/delivery/…’
*
* This noscript section of this tag only shows image banners. There
* is no width or height in these banners, so if you want these tags to
* allocate space for the ad before it shows, you will need to add this
* information to the tag.
*
* If you do not want to deal with the intricities of the noscript
* section, delete the tag (from … to ). On
* average, the noscript tag is called from less than 1% of internet
* users.
*/–>

// <![CDATA[
var m3_u = (location.protocol=='https:'?'https://72.52.81.231/revive/www/delivery/r9.php':'http://72.52.81.231/revive/www/delivery/r9.php');
   var m3_r = Math.floor(Math.random()*99999999999);
   if (!document.MAX_used) document.MAX_used = ',';
   document.write ("”);
// ]]>According to the Spotify says its model is working, and the best thing the industry has going for it right now.

“Without free, pay has never succeeded,” Jonathan Forster, who heads the Nordics region for Spotify, told the Financial Times.  “We’re one of the greenest shoots of growth in the industry. We don’t want to destabilize that. We think that this model works.”

quotation-marks2

Image by Tony Bowden, adapted under Creative Commons Attribution-ShareAlike 2.0 Generic (CC BY-SA 2.0).

The post Spotify Responds: “Without Free, Pay Has Never Succeeded” appeared first on Digital Music News.


Source: Industry News

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *