Spotify is attempting to strengthen their free-tier user experience a new feature they’re calling “active media,” in which non-premium users are able to skip as many advertisements as they wish. They’re calling the feature their “freemium” model, and it could be coming sooner than consumers think.
The ultimate goal of “freemium” is to provide a more relevant experience for both users as advertisers. Spotify users would simply choose which ads are most relevant to them. At the same time, advertisers would not be charged for any ads users choose to skip. The model aims to develop target audiences for advertisers on the Spotify platform. The music streaming giant is currently testing the new feature in Australia, it appears likely that more users could gain this ability in the near future.
According to an official statement from Spotify:
“Spotify has a global advertising business that enables marketers and brands to reach audiences in 65 markets around the world.” says a spokesperson for Spotify. “We launched Active Media, skippable audio and video ads, in Australia for now and will consider expanding to additional markets in the future. We are committed to our freemium model and will continue innovating our products to ensure the best experience on both our free and premium tiers.
But paid subscriptions are king in the online streaming world. In May, Billboard announced that it’s chart measures would begin weighing streams via paid subscriptions more heavily than streams via free-tier accounts. The change took effect in June on the Billboard 200, whereby 1,250 paid subscriptions streams equal one album, while free, ad-supported streams require 3,750.