Spotify is testing a new strategy to boost its number of paying subscribers by moving its lyrics feature behind a paywall for some free-tier users. The music-streaming giant recently began displaying a message to selected non-paying users that reads: “Enjoy lyrics on Spotify Premium.”
The test comes amidst Spotify’s uneven user growth; while the company reported a 34% surge in monthly users for its ad-supported tier, reaching 343 million, its paid monthly listener growth lagged at 17%, totaling 220 million. According to Spotify PR executive CJ Stanley, the company is “currently testing this with a limited number of users in a pair of markets.” Stanley did not provide further details on why the test was being conducted or if it would become a permanent change.
Despite being more popular than its chief competitor Apple Music, Spotify faces revenue challenges. It reported over €2.7 billion in premium subscriber revenue in Q2 2023, compared to just €404 million from its ad-supported tier. The company’s stock closed at nearly $160 per share recently, marking a more than 94% increase since the beginning of 2023 but still far from its all-time highs.
Spotify is testing a new strategy to boost its number of paying subscribers by moving its lyrics feature behind a paywall for some. The streamer giant recently began displaying a message to selected free users that reads: “Enjoy lyrics on Spotify Premium.”
Spotify is testing a new strategy to boost its number of paying subscribers by moving its lyrics feature behind a paywall for some free-tier users.
The number of FM radio stations that offer lyrics in their mobile apps = 0.
#YoureNotEvenTrying