Spotify can't stop, won't stop growing. So what's the secret to its subscription success?
👉 Background: Spotify was founded in Sweden back in 2006 and revolutionised the whole music industry by turning music into a subscription service.
👉 What happened: And Spotify can't stop, won't stop growing. The company beat estimates for both its total users and its revenue - and stock went up 13% in response.
👉 What else: Spotify is going real haaard on all things audio - like podcasting and audiobooks. Remember Joe Rogan? The Ringer? Spotify now has 4.4 million podcasts... and it just goes to show that Spotify isn't falling victim to subscription fatigue, like many other streaming companies.
💡Subscription fatigue is when customers get tired of paying for too many subscriptions over time. Unless the subscription platform keeps innovating, customers will fall away over time - like we've seen with Netflix losing more than a million subscribers recently.
💡Spotify has managed to continually think of new(ish) products and features. Think: its focus on podcasts and fun features like Wrapped and blended playlists.
💡Now, Spotify wants to make audiobooks the third pillar of its business. So basically, Spotify’s teaching us that the secret to subscription success is to never stop evolving.
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