It’s no secret that Spotify – and the rightsholders it pays – makes significantly more money from a paying subscriber than it does from a free user. Could that change in time, though? The company’s VP of North American advertising Brian Benedik thinks so. “I think you’re going to see the free user catch up at some point, but we’re not quite there yet,” he said at the US MobileBeat conference.
However, Benedik also stuck to the party line on free driving premium signups: “There’s a graveyard of services that have tried to go at this over the last ten years with premium only. It doesn’t work unless you’ve got free and premium working together,” he said. Benedik also stressed Spotify’s interest in using its data on listening to serve better ads, citing the “enormous amount of data on what people are listening to, where, and in what context. It really gives us insight into what these people are doing”.