Spotify is launching an in-app Messages feature for select mobile users aged 16 and older, available to Free and Premium tiers. The feature is intended to complement existing sharing methods and encourage users to remain within the app. Spotify seeks higher engagement to strengthen ad-rate negotiations while pushing ad revenue toward a 20% target amid recent subscription price increases in many markets. The company reports 696 million users and positions Messages as a potential justification for higher monthly fees. Users can opt out of Messages or block others, and artist messaging capabilities remain uncertain.
Spotify is targeting ad revenue to account for 20% of its overall revenue, but it was only at 11% as of June and decreased by 0.7% for Q2 year over year. Spotify recently announced an increase in subscription prices for Premium users in many markets outside of the US. Having its 696 million users more engaged can't hurt when it comes to negotiating ad rates, and the new feature, which Spotify says users want, may make paying a higher monthly fee seem worth it.
Soon, Spotify users will be able to slide into someone's DMs to recommend "Slide" by the Goo Goo Dolls. The music streaming app that still hasn't perfected its shuffle algorithm is rolling out in-app messaging to select markets this week to Free and Premium customers aged 16 or older on mobile devices.
Bottom line: It's unclear if Messages will allow you to DM birthday wishes to Dua Lipa or any other artists, although Spotify says anyone can opt out of Messages or block other users. -DL
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