Spotify is in the center of a busy time. The Sweden based music streaming company went public earlier this month, and today it is gearing up for a big event in nyc on Apr 24 where it might unveil the company’s first piece of hardware. The gathering may also see that it uncover a revamped version of its free cellular service which gives users better access to monitors, individuals familiar with the issue told Bloomberg this week. The upgraded software could in some ways mimic the paid version, the report said, offering more control on what you are able to play.
In the present time, a free ad supported version of Spotify’s cellular service prevents you from picking monitors, leaving you with no choice, but to listen to what it serves up via shuffle whenever you decide on an album or playlist. Additionally, you may just skips tracks up to six times during every hour of usage. The inability to choose specific monitors is the main downside with regards to Spotify’s free cell service, but the business knows that it is this really limitation that drives a few users to switch to its paid model costing $10 per month. As Bloomberg points out, the provider needs to attract new auditors to reassure investors the company is continuing to grow, and making the free mobile version more attractive may be one way to go about this.
The hard part will be to convert these users into the paid model, which is where the real money is made. Spotify’s paying subscribers brought in about 90% earnings in 2017, despite earning less than 50% of its client base, which in the last count totaled 157 million individuals. Spotify is planning to surpass 200 million users by the end of 2018, and also hopes to possess 96 million of them pay the monthly subscription fee, up from the current 71 million. A significant increase in its subscriber base is absolutely necessary to get Spotify, a business that, despite growing earnings, has been losing huge sums of cash in recent decades. Notably, Spotify’s main rival, Apple Music, does not possess a free tier, therefore enhancing its existing offering for novices could prove to be a wise moves for Spotify as it endeavors to keep ahead of the competition. There is no official word from the business about the reported shift to the free version of its cellular service, however we must have a clearer idea about what’s occurring by the end of the month.