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Source: The Wall Street Journal
Summary
Spotify reported rapid user growth, attributing it to a successful Wrapped campaign and new features in its free tier. The company’s user base grew by 17% year-over-year, with 456 million monthly active users. Spotify’s free tier now offers features such as Discover Weekly and Release Radar.
Our Reading
The launch follows a familiar script. Spotify’s Wrapped campaign, a highlight reel of users’ listening habits, has become a staple of the music streaming service. Meanwhile, the new features in its free tier are a nod to the success of similar offerings from competitors like Apple Music.
The free tier now includes Discover Weekly and Release Radar, features that were previously exclusive to premium subscribers. Spotify is relying on its Wrapped campaign and free features to attract and retain users, as the music streaming market becomes increasingly crowded.
The update arrives with confidence, but it’s unclear how these new features will differentiate Spotify from its competitors. One thing is certain: Spotify’s growth is not a surprise, as the company has been touting its Wrapped campaign and free features for some time now.
Spotify’s growth is just another example of the music streaming industry’s never-ending cycle of innovation and imitation.
