More money from more users should be music to Spotify’s ears
Sep 26, 2012 | By The Guardian
Is Spotify missing a trick by not focusing on data analysis to turn higher profits? Vindicia’s Gene Hoffman thinks so.
Spotify has changed the way we listen to music yet again and boasts subscriber numbers that most digital businesses would envy. But with many millions of people only ever tuning in for free, is the music-streaming giant missing a trick? The answer may lie in data Spotify already holds.
Subscriptions are fast becoming an everyday way for us to purchase products and services as diverse as online games and clothing. Sales and marketing teams are responding with savvy ways to sign up new customers to their services. While new sign-ups are an essential step, it’s important to look beyond at the potential of digital businesses to build recurring revenue.
Spotify is one of the services we’ve been watching with interest…