On 24th April 2018, Swedish company Spotify revealed that there will be a major expansion. Spotify will offer free service on a wider scale. The company has taken this move to boost its ambition to make music streaming even bigger across the world.
After being listed on the New York Stock Exchange, the company announced that there is a wide range of possibilities to grow. Spotify will offer free service as its free, advertising-backed offers a key component of its strategy.
At a news conference in New York, the company’s chief research and development officer Gustav Soderstrom said, “We know that it’s the only way that we are going to be able to achieve our goal of getting billions of fans on the platform and getting the entire music industry to the size that we think it should be.”
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In the new redesign, non-paying users will be able to play songs up to 15 playlists per day. Now even non-subscribers can create their own playlists or choose from compilations. Earlier they had to only settle for a shuffle of tracks. The company revealed that the app will use up 75% less mobile data in users with data pack limits.
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Spotify revealed the revamp hours after the industry announced that global revenue from recorded music has soared up to 8.1% in 2017.
Meanwhile, the company is expected to provide tough competition to its rivals like Deezer and Tidal.
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Currently, the Swedish company is the largest music streaming entity in the world. At the end of 2017, Spotify had 71 million subscribers and 90 million used the free service. Moreover, according to the company, 60% of the free users shifted to the paid subscription.
Spotify’s Freemium
The app’s advertising-backed Freemium was earlier ignored by their rivals and artists. But now after the company settled new licensing agreements with labels for Freemium, the company paid back more than 9.8 billion dollars to right-holders. Moreover, the company’s development officer has compared the app to the radio stations of the 20th century. They made music famous and turned them into hits.
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Spotify could very dominate the music podcast and streaming service across the world for the next few years. Once the company infiltrates into all emerging markets like India, there will be no turning back for the company.
