Spotify is launching an in-app messaging feature called Messages for select markets, available to Free and Premium mobile users aged 16 and older. Messages is designed to complement existing sharing platforms by enabling direct song recommendations while keeping users in the app. Spotify aims to increase ad revenue to 20% of total revenue after ad revenue was 11% as of June and fell 0.7% year over year in Q2. Spotify has raised Premium prices in many markets outside the US. Users can opt out of Messages or block others, and artist DMs remain unclear.
The aptly named Messages isn't intended to replace the usual platforms for recommending your favorite Benson Boone song to friends and loved ones-Spotify wants Messages to complement those avenues while incentivizing you to stay on the app more at a time when it seems pretty important for the company: 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.
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. 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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