Spotify offered three kinds of subscription to its consumers – Spotify Free version, Spotify Premium, and Spotify Family. In its free version, Spotify Free, users got free access to a huge library of streaming music. A Free account allowed users unlimited listening hours for the first six months. After the end of that promotional period, listening hours were cut back to 10 hours per month, allowing the users to play their favourite songs a maximum of five times before they were asked either to purchase it as a digital download or upgrade the account...

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LOOKING AHEAD

Despite the huge subscriber numbers and the steady increase in worldwide premium subscribers from 18 million in the first quarter of 2015 to 124 million in the fourth quarter of 2019, Spotify still reported an operating loss of €77 million in the fourth quarter of 2019 (See Exhibit I1I and IV). Even as Spotify’s subscribers crossed 100 million by 2019, the company was still in the growth stage and depended on trial periods and discounts to retain customers. ..

EXHIBITS

Exhibit I: Spotify Investors (2008-2018)
Exhibit II:The World’s Most Popular Music Streaming Services
Exhibit III: Number of Spotify Premium Subscribers Worldwide
Exhibit IV: Summary of Spotify Users and Financial Metrics
Exhibit V:Spotify’s Official Year-end Monthly ARPU
Exhibit VI: Spotify’s Price Sensitive by Age
Exhibit VII: Spotify’s Price Sensitivity by Feature
Exhibit VIII: Spotify Standard Premium Price Worldwide
Exhibit IX: Sales and Marketing Costs of Spotify Worldwide (from 2013 to 2019)