Is Spotify the new MoviePass?

Is Spotify the New MoviePass
Is Spotify the New MoviePass
Are US subscription-based business models an innovation, or a compromise?

Is Spotify the new MoviePass?

by Ben Robinson | Jun 7, 2019 | 9 minutes read

Have you ever wondered why the social features on Spotify aren’t better? It’s not difficult to imagine a more engaging experience if, say, it was easy to co-create playlists or you got updates on what friends and artists were listening to. One explanation could be that it is hard to build siloed social interaction — outside of horizontal apps like Facebook or WhatsApp. But my hunch is that, while Spotify wants to maximize users, it doesn’t want to maximize usage. Why? Because unlike most aggregation platforms, its marginal cost grows with usage, meaning that — like MoviePass — its best customers are actually its worst customers. That’s why it’s struggling to generate profits, why it’s struggling to protect itself from rival streaming services and why it needs to become the pre-eminent platform for podcasts.

The move to subscriptions

Source: Zuora

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