Spotify beefs up free tier to attract more paying customers

25 April, 2018, 15:26 | Author: Jacqueline Daniels
  • Spotify unveils new features at press event

"The mobile free tier has stayed exactly the same since 2014", he said, adding that "discovering music in shuffle mode is a tricky proposition".

"This is not only about giving users a more customized free experience from the day they sign up, but giving them more control over their listening experience so they can easily find and stream their favorites anytime, from anywhere", he added.

Spotify argues that a large uptick in free-tier users could result in big gains for content creators and rights holders - mostly in terms of potential exposure to new fans. It will also impact the battery less. The detail that gained the most attention, however, is the fact that free tier users will actually be able to get on-demand playlists, The Verge reports. "We're doing this because we know it will drive growth: the better our free experience the more likely it is that free users will become premium users". From a financial standpoint, giving customers less incentive to pay Spotify money doesn't really seem like an attractive business model. Not bad for free, although if you factor in that Discover Weekly, Release Radar, and Daily Mix playlists are included, there isn't that much flexibility in your choices.

Desktop users have on-demand access to every song in the Spotify catalog with no skip-limits but have to deal with ads.

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Spotify now operates a two-tier system - premium and free.

The mobile user interface of the free version of Spotify has also been simplified, down to four tabs: Home, Search, Library and Premium.

The move is part of an effort to attract more paying subscribers. Currently, Spotify has approximately 90 million active free subscribers and around 71 paying subscribers.

"It's where 60 percent of paid users start out", said Söderström at an event in NY. The company promises that can reduce the amount of mobile data used by up to 75-percent.

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The changes will roll out over the "coming weeks" to both iOS and Android.

"We want users to have a great playlist experience", Babar Zafar, the company's vice president of product development, said. This is way sort of the subscription version of Spotify who recently floated in the USA.

The platform's free tier will also feature algorithmically suggested songs for user-created playlists.

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