According to an article at AllThingsD Spotify now have 1.4M signed users for its free trial in the US. Not just that, they also have 175’000 paying customers who can be added to the more than 1.5M paying customers already in Europe. Spotify is becoming a force to recon in the music industry, and fast. Some of the success of the launch is most likely thanks to the lobby ground work that has been performed by Sean Parker for one, prior to the launch; but the service is good enough to stand on its own. If it was not the US launch would never have happened to start with.
So are these numbers good or bad; with what can we compare them? Well to the European market of course.
1.4M users acquired in just one month with one to ten ratio between paying and non-paying customers is a great launch where ever the launch may be. To do this in the US, competing with new services appearing daily is even stronger. I believe that these numbers show that there is an acceptance to paying for music as long as the service and amount of music is good. Napster was quick and easy back in its days and created the basic mental framework which made people into taking music for granted. To see it as a right instead of a service really. They created a wave and a movement which Spotify is riding on today with a legal option which also work even better then Napster did in some areas. Since Spotify made music mobile with great apps they really made music as a commodity that we can all have with us at all times. Personally I have been a paying customers for quite some time and I have never had any thoughts of cancelling since it gives me the ability to have music with me using my iPhone where ever I go.
Given the brief amount of time Spotify has been available in the US and already show a just over ten percent conversion rate between free and premium users is really good. As the free users start running out of time per month I strongly believe that the rate will increase towards about fifteen percent which is the number it has been reported from the European market according to Sean Parker. I truly hope that the music industry finally will see the potential in these services so that we can continue to have legal alternatives to get music into our lives.
If you live in the US and don’t have an invite yet, just let me know and we’ll sort it out! I see the fee I pay every month both as a subscription fee but also to show the industry how I am prepared to pay for music. Flat rates instead of individual pricing when it comes to mainstream music is my preferred way and I accept without any doubts that I will need to buy albums and songs from artist too small be found on streaming services. Streaming is the future for music that already happened, let’s get out there and show that we support it.
I am not in any way affiliated with Spotify and write just based on my own experience. If you have any tips of other services similar or even better please get in touch with me so I can evaluate! If you already have a Spotify account, you can look at what’s in my listening lists by following the link below!