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Time to face the Apple Music: Spotify looks worried, and rightly so

DavidJB

Spotify announcements always have to be read with a hefty dose of caution. Why did the number of paying subscribers increase very sharply towards the end of last year? Well, there could be several reasons, but the most obvious is that Spotify started offering extremely generous discounts to new subscribers. Notably, many were able to get a 3-month introductory trial for only £1 or $1. That's right: just 33 pence or cents per month! In Spotify's stats these would presumably count as 'paying subscribers' even though the actual revenue per head would probably be less than if they were 'ad-supported' in the free tier. So the acid test, which journalists should be putting to Spotify, is whether revenue per head has actually increased over the period.

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