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Spotify Tests Lyrics behind pa...Spotify Tests Lyrics behind paywall to Boost Paid Subscriber Numbers
The Silicon Review
06 September, 2023
Author:
The Silicon Review Team
Spotify continues to invest in ad-related products.
Spotify has tested putting lyrics behind a paywall for non-paying subscribers. A spokesperson for the company confirmed that it is "only a test" that is currently being conducted with a select group of free-tier listeners in two markets. The move could be due to Spotify’s free user base, which is growing at a faster rate than its paid subscriber numbers. The company's ad-supported monthly users have increased by 34% over the past year to reach 343 million, while its paying monthly listeners rose by 17% to 220 million over the same period. Spotify’s earnings report from Q2 2023 showed that it recorded more than €2.7 billion in premium revenue and just €404 million in ad-supported revenue.
The company’s paywall test signals its focus on driving up the number of paid users to improve its revenue streams in order to become profitable. Spotify continues to invest in ad-related products. The company even gives out some freebies, its revenue is still underwhelming when compared to Apple, its top competitor and most valued company in the world. Spotify’s stock price is currently nowhere near its all-time highs, but it has risen by over 94% this year to close at nearly $160 per share.
