Following up on our breaking report about Spotify officially going public we’ve come to learn a few more things about where they plan on taking their company through the SEC’s F-1 filing thanks to Pitchfork.
Almost 1/3 of all streams on the platform comes from Spotify’s own playlists
“We now program approximately 31% of all listening on Spotify across these and other playlists, compared to less than 20% two years ago.” Spotify’s greatest strength has always been its dominance in machine-generated playlists so expect this to remain consistent as they continue to learn more about your listening preferences and tailor your algorithmic playlists better and better to those.
Spotify’s Family Plan’s effect on their average revenue per subscriber
The launch of 2016’s Family Plan resulted in a decrease of “9% from 2015 to 2016 and 14% from 2016 to 2017” in average revenue per Premium subscriber, but also those of average revenue per subscriber. On the plus side, Family Plan coincided with a decrease in cancellations of Premium subscriptions in that period too.
Expect more podcasts and video
Lately, Spotify has placed a greater emphasis on integrating video content within their flagship playlists and also marquee releases. It looks like that’s here to stay. “We are an audio first platform and have begun expanding into non-music content like podcasts. We hope to expand this offering over time to include other non-music content, such as spoken word and short form interstitial video.”
Spotify sees further user acquisition from traditional radio
In a lot of ways Spotify has become the new ‘radio’ for a younger demographic in that it’s music on demand except you have full control over the music and you don’t have to listen to ads anymore. And it looks like they’ll continue to try and attract users from conventional radio listeners. “We believe there is a large opportunity to grow Users and gain market share from traditional terrestrial radio. … A migration away from radio broadcasting is likely and it will benefit both consumers and artists alike.”
This is just the beginning
Finally, it looks like they’ve placed great aspirations on becoming even bigger and more ingrained with creators than before. “We envision a cultural platform where professional creators can break free of their medium’s constraints and where everyone can enjoy an immersive artistic experience that enables us to empathize with each other and to feel part of a greater whole. But to realize this vision, professional creators must be able to earn a fair living doing what they love, where monetization is at the core of a creative proposition and not an afterthought. We care deeply about our creators and our users and we believe Spotify is a win-win for both.”
H/T: Pitchfork
This article was first published on Your EDM.
Source: Five Things We Learned About Spotify From Their IPO
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