For podcast creators Spotify has released some really interesting features to its platform. Well, now even free users can search for and play any song under the sun! This new capability, part of a feature set called “Pick & Play,” will enable users to select any track or play songs shared by friends or artists they follow on social media. This change represents a monumental step in Spotify’s direction. The company has focused heavily on improving user experience and driving away ad revenue.
In yesterday’s earnings call with investors, Spotify revealed it crossed 276 million Premium subscribers. Free users constitute the vast majority of its total user base, 90% and growing. It has very much focused on its free plans. Chief Executive Daniel Ek stressed that the company has been “moving too slowly” when it comes to building up its advertising business. Currently, that segment makes up just 11% of Spotify’s overall revenue. The platform intends to raise this number up to 20%, underscoring the need for a more robust ad-supported option.
In addition to “Pick & Play,” Spotify introduced two other features: “Search & Play” and “Share & Play.” These improvements will empower free users to advocate for their communities like never before. We hope this change will build a dynamic community spirit amongst them. Beyond interactivity, Spotify is interested in keeping specific physical exclusives—like merch or ticket access—within its Premium subscriber base. Most interestingly, features such as support for lossless audio, AI-generated playlists and Mix will stay within the Premium bubble.
Will Spotify’s recently announced features—like Messages and personalized playlist daylists—no doubt herald a new era in social music? These exciting new features will be released to all users, free and paid. With the rollout of the new Messages feature, Spotify has made a clear play at becoming a more social platform that promotes user interaction and engagement.
With all of these updates, Spotify has made it clear that they are not done changing the platform. We’re as dedicated to balancing the experience for free and Premium users. These recent additions welcome an even wider range of users, but have still left plenty of strategic benefits for paid subs on the table.
