Photo: AP Photo
In the 9 months since the streaming music service landed in the US, Spotify’s paying member base isn’t growing as fast as it was expected to, reports the New York Post.3 million US subscribers have signed on since June.
But only about 20% of those — 600,000 people — are actually paying to use Spotify.
This is possible because the majority of users sign up for the free model that gives them unlimited access to music for six months, only then limiting them to 10 hours of music per month and no more than five plays per song.
“The question is, how sticky is Spotify? Is it able to hold on to users for more than a year?” one source told the NYP. “The free people are not signing up for a long period of time, or at the highest pricing tier, or they’re not renewing.”
Spotify’s new strategy is to make the free model even more enticing — the company lifted the 5-plays-per-song limit in order to get even more people on board. The only question becomes how to make them more willing to shell out for the service.