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Concert Regular
shakman
Posts: 5
Registered: ‎30-11-2012

Reduce Spotify Premium subscription price -- win-win scenario

Hi Spotify,

 

If the Spotify Premium subscription was $4.99, you would easily get twice the number of subscribers, and hopefully even more than that. More users is worth more than revenue in the short term, because increased number of users means higher potential for new subscribers.  PLEASE think about it.

 

There are many users on the fence like myself who would subscribe at this level instantly. At the moment I just cannot justify it at $9.99/mo when services like NetFlix cost $7.99 for unlimited streaming of movies.

 

"You have nothing to lose but the free-loaders!"  :)

 

Best,

 

Community Legend
Stupify
Posts: 863
Registered: ‎10-03-2012

Re: Reduce Spotify Premium subscription price -- win-win scenario

[ Edited ]

An artist/album that is not on Spotify is an exception rather than a rule - 95% of the popular acts are in.

 

Meanwhile, a movie that is not on Netflix is basically 90% of the world's movies.

 

This is not Spotify being too expensive, it's Netflix being too cheap. You will never see recent popular films on Netflix. When people are paying $50+ per month for cable TV, there is no way the movie industry would ever give up that money. Spotify's $10/month is really cheap when you think of it.

Peter
Posts: 46,465
Kudos: 12,769
Solutions: 3,489
Registered: ‎03-07-2012

Re: Reduce Spotify Premium subscription price -- win-win scenario

I am agreed with Stupify here, I think Spotify is a bargain at a price of £9.99! Unlimited music streaming in such amazing quality and almost every artist your would ever want to listen to! :)

 

Peter

Peter
Spotify Community Mentor and Troubleshooter

Spotify Last.FM Twitter LinkedIn Meet Peter Rock Star Jam 2014


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Concert Regular
shakman
Posts: 5
Registered: ‎30-11-2012

Re: Reduce Spotify Premium subscription price -- win-win scenario

I agree with you guys too, Spotify is a great deal!  However, I think you missed the point of my message: I think Spotify will likely be able to make *more* money in the mid to long term if they reduce premiums since many people are sitting on the fence due to the seemingly high subscription price. I'm pretty sure if they lower subscription to match NetFlix at $7.99 or even lower at $4.99, the number of subscribers would increase dramatically and easily make up for the price difference in the mid to long term.  More subscribers and a larger Spotify community will only improve the service and Spotify experience.

 

However, it's possible this is a delicate balance between bandwidth and cost which I'm not taking into account, ie, if there are more users, it'll take more bandwidth, and result in higher costs for Spotify. Thus if they cut the subscription price in half, they must increase number of subscribers by more than double to make up for the addtional bandwidth, storage, etc, costs. Perhaps still possible at $7.99. Who knows... we can't see their books so it'll be great if someone from Spotify could comment... 

 

Peter
Posts: 46,465
Kudos: 12,769
Solutions: 3,489
Registered: ‎03-07-2012

Re: Reduce Spotify Premium subscription price -- win-win scenario

You can already subscribe to unlimited for £4.99 though. 

I can understand what you are saying, half the price, double the subscribers it would be the same amount of money. My guess is that this is not possible due to the amount Spotify has to pay in royalties and licensing but obviously that is just speculation.

 

Peter

Peter
Spotify Community Mentor and Troubleshooter

Spotify Last.FM Twitter LinkedIn Meet Peter Rock Star Jam 2014


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Concert Regular
shakman
Posts: 5
Registered: ‎30-11-2012

Re: Reduce Spotify Premium subscription price -- win-win scenario

Good point, Peter, about royalties. That's another possible hole in my theory. BTW, in my mind there are many more people on the fence at the $9.99 level due to the unlimited moble access which is literally a life changing event!

 

Peter
Posts: 46,465
Kudos: 12,769
Solutions: 3,489
Registered: ‎03-07-2012

Re: Reduce Spotify Premium subscription price -- win-win scenario

That is true!

Maybe you should write a topic over on the Ideas Exchange to formally request this as a feature ;) 

I also think you might be interested in this idea to improve the unlimited experience.

 

Peter

Peter
Spotify Community Mentor and Troubleshooter

Spotify Last.FM Twitter LinkedIn Meet Peter Rock Star Jam 2014


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Concert VIP
Sp00nMan
Posts: 7
Registered: ‎01-01-2013

Re: Reduce Spotify Premium subscription price -- win-win scenario

I agree.. I am on the fence about renewing my Pandora subscription or not.  I would get the unlimited if it allowed me to use my iPhone..but putting that one feature up at $9.99 puts spotify out.. I mean really, I pay $36 a year for Pandora, and listen on anything.. and it just is missing the feature to pick out the song you want or pause/rewind.  I don't think that's worth $120 a year..

 

Heck, I would pay $60 a year for spotify at most.. that's $5 a month for premium.. and I would sign up right now if that was the case.

 

Guess it's back to pandora for another year... Or Grooveshark is having a deal at $5 a month for their service.. maybe I'll check that out.

Music Fan
MisterAlix
Posts: 1
Registered: ‎19-02-2013

Re: Reduce Spotify Premium subscription price -- win-win scenario

He's right, heck even a discount - bringing the price down to $99.99 a year would be nice. I'm also paying $36 a year for Pandora at the moment.  It includes extra skips, adding a variety to a playlist, add free, and works on mobile too- and doesn't repeat the same song as much as spotify does. Not complaining, just stating the facts, consider lowering the monthly fee for long term subscribers spotify :) thanks! Offer a package or something (anyone every buy 3 year gym passes?)

Music Fan
psaratscheff
Posts: 1
Registered: ‎04-04-2013

Re: Reduce Spotify Premium subscription price -- win-win scenario

+1 to this idea here! I know the consumer will always prefer cheaper prices, but it is not about preferring, but rather taking it or not this time. I wanted to buy the premium account, expecting it to be around 5 dollars, but 10 was too much as soon as I saw the price. I know I love spotify though and would pay for a year or more, so I thought, "Ok, I will see what's the price for a yearly suscription", but the price stays the same! Why would I buy such thing! I think it would be clever to consider lowering the price for premium suscription (After research of the market sure), but also and maybe even more, to consider keeping the price, but offering better prices when paying 6 months, 1 year or even 2 years for example. I would definitely buy 2 year premium suscription for 120 dollars, but will not pay 10 dollar a month for the suscription, because maybe it costs that much (Royalties and stuff), but as a consumer, all I see is what I prefer, premium suscription or 10 dollars more in my pocket every month... I think I value premium suscription at about 7 dollars a month, which means, I would pay 6 dollars, wouldn't pay 8 dollars, and if the cost were 7 dollars, I would be in the limbo not knowing what to choose.
Still, I think what only matters is if Spotify income would actually increase by lowering the cost per user, I think it would.
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