Part 3/7:
Understanding Spotify’s Service Offerings
Spotify offers a tiered service model that includes an ad-supported free version and a premium subscription plan. Traditional ad-supported users experience interruptions with advertising, while premium subscribers enjoy an ad-free experience, offline listening, and overall enhanced control over their listening habits.
With 159 million monthly active users and 71 million paying subscribers—about 44% of their user base—Spotify has demonstrated solid growth in its premium offerings. The hosts noted that the switch from lower-revenue ad models to higher-margin subscription tiers has significantly improved their overall business prospects.