Digital Music News:
When it comes to services like Spotify, there are two types of users: (1) those who are paying, and (2) those who aren’t. And, Spotify just dumped a large number of (2), thanks to some recently-implemented restrictions designed to get more of (1).
In fact, according to internal documents obtained by Music Ally, a monstrous 1.6 million non-paying users either ditched their accounts or started a premium relationship between March and July of this year. And, most importantly, Spotify added 520,000 paying subscribers in that period, a 51 percent surge. By July 1st, Spotify counted 1.54 million premium subscribers, all before setting foot in the US…
Music Ally can reveal that between March and June this year, Spotify lost 1.6 million free users, but gained 644,000 520,000 paying subscribers.
Here’s how that breaks down: In March, the company had 4.73 million free users and 1.02 million paying subscribers, with a total active user base of 5.75 million, of whom 17.8% were paying. Then the restrictions were announced in mid-April and implemented on 1 May. By June, the leaked report reveals that Spotify had only 3.13 million free users, but 1.54 million paying subscribers: 32.9% of its 4.67 million active users.
The figures for free users may seem a little on the low side. In early March, Spotify Spotify CEO Daniel Ek revealed that the service had passed one million subscribers, and that this was 15% of its active user base – implying total active users of around 6.7 million, and thus around 5.7 million free users…