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Spotify's freemium model gains traction - Venture Insights

Report Overview

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Spotify’s freemium model gains traction

PublisherEnders Analysis.
Publish Date November 14, 2011
Sector Digital Media, Fixed Line (Internet and Voice), Music and Radio.
Company Spotify, Virgin Media.

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Spotify has just passed the 2 million subscriber mark in Europe and the US, and could reach 2.5 million by the end of 2011

Smartphone adoption and partnerships with MNOs and ISPs have proven a key driver of subscription in Europe for Spotify, which lacks a telecoms partner in the US. We think subscription is profitable

Spotify’s lower usage caps on the freemium tier will help compress total losses in 2011 in relation to the £25 million reported in 2010, despite the US launch