Spotify is hoping to re-capture the attention of former subscribers with a new offer on Spotify Premium.
Spotify launches the Premium holiday, which is going to attract new users and also hope to capture the former subscribers' attention. For those who are new to Spotify, it is really a good thing as you just need to pay $9.99 and enjoy three months service.However, this special offer are elligible for the subscribers who have used Spotify Premium but canceled the service. Former subscribers can pay the regular monthly price of $9.99/month — and receive three months of service.
It is a good news for new subscribers to take a try for paying $9.99 for three months. But you can bet ARPU will take a huge hit there. Spotify’s stock has also taken a battering after Amazon announced a new ad-supported free tier for Amazon Music.
Spotify’s Q3 2019 metrics revealed how well its three-month promotion is working to attract new users. Monthly active users are up to 248 million — nearly 30% growth from the same period last year. That growth is up 7% compared to the previous quarter. Spotify continues to maintain around a 45% ratio of premium to ad-supported subscribers.
Spotify claimed 113 million paying users in Q3 2019 — up 31% from 87 million in Q3 2018.
Revenues topped $1.9 billion and are up 28% year-on-year and 4% quarter-on-quarter. Spotify also shared that it expects to report a loss for Q4 2019.
With a new Spotify Premium holiday deal like this, that’s not really surprising. Spotify’s quarterly loss estimate for Q4 2019 is between $34 million and $145 million. Spotify also said it believes it is growing roughly twice as fast as Apple — though Apple Music now has more paying subs in the U.S.
“Relative to Apple, the publicly available data shows that we are adding roughly twice as many subscribers per month as they are. Additionally, we believe that our monthly engagement is roughly 2 times as high and our churn is at half the rate.”
This new Spotify Premium offer will start from November 18th to December 31st. However, subscribers who ended their subscription after October 19th, 2019, are not eligible. But for people who have never subscribed to the service can get a three-month free trial for Spotify for individuals and family plan accounts.
Extra tips:
Above we had learned the good news of Spotify Premium holiday for its users. But there is one thing that you need to note. As we all know, Spotify music is OGG audio format and most devices can't support it. In order to let you enjoy Spotify music on other devices without any limitations, you could use DRmare Spotify Music Converter to convert Spotify music to common audio formats and customize the music as you like. What's more, no matter you are free or premium users, you could use this tool to convert your Spotify music.
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