Spotify may be markedly different from Pandora, but in order to attract more paying users, it’s co-opting Pandora’s mobile strategy.
Spotify is planning to debut a free, ad-supported version of its service on mobile devices later this month. The service will allow users to create a playlist of approximately a dozen songs and receive song recommendations based on that playlist, according to an agency executive briefed by Spotify. Users will not be able to take any songs “offline,” however. That will remain exclusive to paying users, the exec said. (Spotify declined multiple request to comment.)
But this isn’t about Spotify chasing ad dollars. As Pandora’s profitability struggles have shown, it’s nearly impossible to build a sustainable music streaming business solely around advertising. Spotify is catering to listeners’ sensibilities so it can (hopefully) convert them to paying users. So far, Spotify has proven itself adept at attracting a valuable niche audience, but now it’s copying Pandora so it can garner a critical mass.
Via Olivier Cauchois