Will this drive even more subscriptions, or drive users away and kill the buzz? After a six-month honeymoon in the US, Spotify's freebie users will soon start experiencing something unfamiliar: usage restrictions. And it was all spelled out in the terms of service that launch morning in mid-July:
So, 'unlimited' will start to shift towards 'limited' over time, until a large percentage of free users are faced with a decision: pay, remain heavily-limited, or bail. Spotify has confirmed that the shift will start rolling January 14th (next Saturday), though there could be some modifications in the exact limitations themselves (hours, unique plays, etc.) The two payment options are Spotify Unlimited, at $5 per month, and Spotify Premium, which ads offline access and portability for $10.
All of which opens a complex riddle: free users can become paid users over time, but what about free users that never convert? Spotify has been cagey about revealing its US-based user number, pegging it 'well north of 10 million,' though we've heard something substantially greater.
Sounds like a lot of freeloaders, but free users have value, even if they're expensive to maintain. They spread their listens on Facebook, they share playlists, they tell friends, and they - potentially - cause others to sign up. It's a network effect loosely codified as 'freemium,' and it's about to undergo a serious shift at Spotify.
At last count, Spotify's US-based premium subscriber level was 250,000 in the US (with approximately 2.5 million worldwide).
Source
digitalmusicnews.com
Posted 01/2012
Source
digitalmusicnews.com
Posted 01/2012
