Some of you may have already red Spotify’s blog.
14th of April Spotify announced that they will limit the free users.
If you signed up before November 1st 2010 you can only play each track for free up to a total of 5 times and they will allow only 10 hours of listening per month for its free users.
So that means they may have the chance to increase revenues flowing to their basket but how will this affect the free users?
Will they stay as free users with these limitations or since they are addicted to Spotify will they become a premium member?
I am insanely sure that Spotify has already made some estimations around that but what about the adds?
If you are a premium member in Spotify you are add free while listening your tracks.If you increase the number of premium members in the current setting, that means you decrease the number of free users as well the number of adds you can broadcast. This will again definitely lead to decrease in the revenues coming from adds.
Ok this is logical and again expected I guess. I think Spotify can cover these revenues depending on their free member growth per month. BUT what about the business models designed to be dependent on Spotify’s powerful digital marketing tool as adds by small start-up companies? Do you think they will rethink about this and modify their business model?
So I think it is not the only free users who are a bit disappointed about Spotify’s decision, it is also small start-up’s and digital marketing fans who just lost a channel to reach their customers.
You can read more about this on Spotify’s blog and do not miss to read a few user comments some of them are really fun 🙂