Spotify Not Throttling Americans, Subs Hit Three Million
Early last week, a six-month promotion period, during which U.S. users were exempted from Spotify’s five-plays-per-song, 10-hours-per-month limits, was due to end for the first of the service’s American adopters, if reports were to be believed. But that apparently hasn’t yet happened.
U.S. users are apparently still enjoying desktop streaming with no such limits, if the absence of gripes in social media is anything to go by.
Reasons are not clear, but Spotify is a firm believer in using limited desktop free to drive premium subscriptions. It has been also been experimenting with 48-hour free trials and with free retention periods for cancelling subscribers, as it figures out the most attractive freemium levers to push.
Conversion and adoption
It appears to be working. Speaking during an event at Universal Music Group in London on Thursday, Spotify chief content officer Ken Parks revealed Spotify has now hit three million paying subscribers. That’s up from 2.5 million in November, when Spotify said it had 10 million active users and a 15 percent premium conversion ratio. Now Spotify says it is converting 20 percent to paid; it did not update the active-users count, though mathematics suggests it is 15 million.
This success, as was already known, is driven by ringfencing mobile for premium-only. “This is the one thing people are willing to pay for,” Parks said. Read the full story at Paidcontent.co.uk