Spotify has several benefits that you can enjoy if you choose to subscribe. These benefits include: Family Plan, Student Discount, Access to the Archive, and Data-driven Personalization. You may want to know more about these features.
1. Access to the entire archive
Besides its impressive music library and free streaming service, there are a few other Spotify benefits. One of them is the fact that you can download tracks to listen to offline. In addition, it is possible to stream songs to other devices such as a smart TV or a car. This service is especially useful if you travel frequently.
You can also get the most out of your Spotify experience by opting for a premium subscription. The price ranges from $10 to $40 per month, but the benefits are well worth the chug. For example, you can get exclusive access to new releases before they hit the streaming shelves, a feat which most services fail at.
2. Data-driven personalization
Data-driven personalization is one of the many benefits of Spotify. The streaming music service uses data to improve the user experience and to train its machine learning algorithms. This allows the company to provide valuable insights to its users, advertisers, and creators.
Spotify uses the listening history of its customers to generate personalized playlists. Every week, the service sends users personalized playlists based on their listening habits. Using big data techniques, the company can identify and take advantage of emerging user trends in real-time.
3. No commercial breaks
The world’s largest audio streaming platform is also the most monetised marketing arena. In Q4 2019, Spotify reported a 27% increase in advertising revenue. While advertising is not the only monetization model on the site, it does provide an effective way to reach an engaged audience.
Advertisers can use various ad types to promote their business, including video, podcast ads, display banners and more. Audio and video ads are played between songs. These can be served to users anywhere they have access to Spotify, regardless of whether they’re on their mobile or desktop.
4. Family plan
A Spotify family plan is a great way to save money and still enjoy the benefits of a premium subscription. It offers ad-free music listening and unlimited skips, along with a host of other features. However, the family plan is only available if you’re a member of a household that’s living in the same house.
The new plan allows up to six members to access Spotify for less than the cost of two premium accounts. The plan is available in all countries where the service operates.
5. Marketing efficiency attributed to word-of-mouth growth
Word of mouth has helped Spotify grow in a big way. The company uses a lot of user data to understand its users’ tastes and interests. This allows the platform to create personalized playlists and recommend songs to users based on what they like.
Spotify also focuses on creating creative marketing campaigns. For instance, the company released a fun campaign that used the emotional value of music. Using the hashtag #thatsongwhen, users could post their favorite moments involving music.
6. Large captive audience
Spotify’s competitive advantage lies in its access-based model, data-driven personalization, and curated playlists. It is also able to monetize a free audience through ads. In this way, it is well positioned to expand and scale in its music ecosystem.
The company grew its revenue by 39% last year. For ad-supported users, gross margins increased by 22%. Meanwhile, premium subscriber revenue increased by 38 percent.
Spotify is the largest on-demand streaming service, competing with larger platforms such as Apple and Google. Yet, it has been able to increase its gross margins through providing value to its suppliers.
7. Business model
In the music industry, Spotify has a unique business model. It offers ad-supported service, which monetizes through the sale of audio and video advertising impressions. As a result, it can retain users for a longer period of time. However, the ad-supported business also has a different cost structure.
The ad-supported model is designed to funnel free users to premium members. Premium membership offers additional benefits and features. Therefore, it generates many times the revenue of ad-supported users.
While it is difficult to predict whether the business model of Spotify will remain sustainable in the long run, it is clear that the company is working well. In fact, it has maintained growth in the first quarter of 2020.
8. Student discount
The Spotify Student Discount offers students a chance to experience the best of the web’s offerings. Using this discount, students can enjoy an unlimited service without paying extra.
In addition to streaming music and other audio content, Spotify also gives users access to a wide variety of podcasts. It also provides users with the ability to create playlists and browse the collections of their friends.
If you’re a college student looking to save a few bucks on the monthly bill, you may want to consider signing up for a premium subscription. This plan will grant you unlimited skips and music downloads.