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Spotify will now let free users pick and play tracks
Spotify has introduced new features for free users, allowing them to search and play specific songs, share tracks via social media, and increase engagement. This move follows its premium lossless streaming launch, as it aims to boost its struggling ad revenue, which currently makes up only 11% of total revenue. The new features are expected to enhance user experience while keeping some advantages exclusive to Premium subscribers.
Key points
- Spotify has launched 'Pick & Play', 'Search & Play', and 'Share & Play' for free users, allowing them to select and play specific songs.
- These features enable users to interact with music shared on social media, potentially increasing engagement and ad exposure.
- Previously, free users could only shuffle songs with limited skips on their mobile devices.
- Spotify's ad revenue currently accounts for 11% of overall revenue, and the company is aiming to increase this to 20%.
- The new features are part of a strategy to improve user engagement among the 433 million free users.
Why it matters
- The update aligns with broader trends in the streaming industry, where user engagement is critical for ad revenue growth.
- Similar platforms like Apple Music and YouTube have been offering more flexible options for free users to enhance user experience.
- The push to increase the ad revenue percentage reflects current challenges in monetizing free user bases, prevalent across digital platforms.
Spotify's enhancements for free users represent a strategic pivot to boost engagement and ad revenue, following a trend of greater flexibility in music accessibility across platforms.