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Free Users Might be Able to Skip Tracks on Spotify for Almost a Dollar

Spotify is a Swedish streaming media and multimedia service provider founded by Daniel Ek on April 23, 2006. It is the world’s largest music streaming service provider. As of June 2021, it had more than 365 million monthly active users, including 165 million paying users. Spotify is listed (through a holding company in Luxembourg City, Spotify Technology SA) in the form of American Depositary Receipts on the New York Stock Exchange. Spotify provides restricted digital rights to podcasts and recorded music, including more than 70 million songs from record companies and media companies.  As a free value-added service, basic functions provide free advertising and limited control, while additional functions, such as offline listening and ad-free listening, are provided through a paid subscription. Users can search for music by artist, album or genre, and can create, edit and share playlists.

Streaming media services are adopting cheaper subscription plans in an attempt to convert free users into paying users. Following the news of the YouTube Premium Lite offer yesterday, Spotify is the latest streaming media confirmed to be cheaper. The world’s largest music streaming service is testing a new monthly plan at various prices, which can block ads but gives you unlimited jumps and allows you to select specific songs from an album or playlist to play. At least one user told The Verge that they saw the ad price of the new Spotify Plus tier at $0.99. It is understood that Spotify will provide specific users with different price plans during the trial period, and you can choose to participate or choose alternatives. Currently, free users can only skip six tracks per hour and must listen to songs mixed in albums and playlists. If you’re tired of listening to Justin Bieber or just want to repeat Billie Eilish’s new tracks, that’s a shame.

Despite these incentives, getting people to pay for advertising-supported services, even at only $0.99 per month, is still a good problem. Especially when they are used to getting it for free. On the other hand, video broadcasters like Hulu and HBO Max have succeeded or are trying to do so. The risk is that it may eat into Spotify’s existing premium user base, which accounts for 165 million of its 365 million subscribers. Turning the remaining 200 million users into paying members is clearly the goal here. It may be that the low price of US$0.99 helps alleviate this shift. If Spotify expands the program to more users, we will know whether this gamble has paid off. In the past, the company has done this with new plans, including its $12.99/month Duo layer designed to prevent password sharing and its upcoming non-destructive “HiFi” product.

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