@musicbizworld: Spotify Grows Subscribers by Giving Away Subscriptions

More like an old school record club than ever.

The Swedish streaming service is currently standing at around 37m subscribers, a figure accelerated by a recent price promotion in multiple territories.

For the past quarter, Spotify has been targeting new/free users with a ‘Love Your Summer’ promotion, offering three-month subscriptions for just $0.99 in the US – as well as offering lapsed subscribers a $9.99-for-three-months deal.

Update: We’re told previous Spotify promotion trends suggest it will lose between 1m-1.5m of these subscribers once their cut-price deals end – putting today’s true ‘recurrent subscriber’ figure at a healthy 35m-36m.

Major labels may have per-subscriber minimum protections so they get paid regardless of how much Spotify gives away, independent artists will not.  That makes give away subscriptions nearly zero royalty payments that are worse than advertising.

Read the post on Music Business Worldwide.