Just 9% Willing To Pay For Spotify

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The hope of most free and ad supported music services is that a percentage of customers will be willing to pay for a premium version.  Spotify offered a glimpse inside the reality of th
ese hopes last week when founder Daniel Ek admitted that not more than 90,000 of their more than 1 million UK subscribers had chosen to upgrade to their premium service.

Spotify iPhone

Spotify charges £10 a month for their ad-free Premium option. But £900,000 a month plus ad revenue
s is apparently not enough to make the service profitable given the deals Spotify has with the labels. New mobile apps could help increase subscriptions, but Ek did tell a UK audience that the company could be profitable if it "chose to be". For now, however, he's focused on developing the business.

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  1. Hey, who needs a long term profitable and viable business model when you can sell it for hundreds of millions instead?

  2. I think to view this model as a failure is only correct of you are talking about it being used to establish a brand rather than an artist. There is, and always will be a profound difference between those 2 commonly swapped terms. I think an artist will fail if they attempt to be a brand.

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