Spotify

Tapping into the most engaged and loyal users to define the future of Spotify Premium.

The Ask

In 2008, Spotify launched their revolutionary streaming service, resurrecting the music industry from inevitable demise. But in 2018, amidst savage competition from startups and legacy brands alike, Spotify began to see its decade-long reign erode, coming to a head in July when Apple Music surpassed Spotify Premium’s US subscriber count. Taking cues from the lessons of the past, Spotify recognized the need to “lead the receiver” and evolve its brand and experience to ensure differentiation and spark opportunities for growth. How can Spotify Premium leverage the values and beliefs it shares with its most active and engaged users to define the future of the brand and experience?

Unearthing Truth

Who is the loyal Spotify Premium subscriber, what motivates them, and how do they differ from Spotify Free users and loyal users of competitive services? This is the question we set out to answer through a quantitative and qualitative exploration that spanned five countries. We began the process by deploying our proprietary Iceberg Study™ to thousands of loyal music streamers. We then scheduled in-depth follow up conversations to probe deeper into insights and provocations unearthed in the Iceberg Study.

Unlocking Possibility

What did we find? Spotify Premium’s most loyal users are on a lifelong quest for understanding and purpose, and music (and content at-large) is a tool they use to help them find their way. This insight gives Spotify a clear role to play as it looks to extend its offering and deliver a uniquely meaningful experience to its users, both on- and off-platform.

Manifesting Impact

We brought the insight to life through immersive data and video in order to guide future marketing and innovation efforts. Then, in collaboration with key stakeholders, we hosted several cross-functional ideation sessions in NY and Stockholm to inspire new, disruptive products, features, and experiences for the Premium brand.

Results

In late 2018, Spotify began releasing updates to its Premium mobile app that include many features inspired directly from this work. Together, these features give Spotify Premium members new opportunities for discovery through music. At the close of 2020, Spotify boasted 124 million Premium subscribers, up 29% year-over-year and ahead of forecast.

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