mackay bell

Not all subscribers are equal and that's why Spotify's revenue is disappointing and will probably continue to be.  A large percentage of their subscribers are taking advantage of $1 a month trials (which they might not renew) or are bundled subscribers who get discounts (or free premium service) as part of their cell phone service or are Starbucks employees with free "paid" services, etc.  All of Apple's paid subscribers are paying full rates (or family plans) after a three month trial.  It would be interesting to know how many of Spotify's "premium paid subscribers" are actually paying anything close to the base $9.99 a month.  Probably not so many.  Spotify still works primarily as a free service, despite it's efforts to claim otherwise.  It's going to be slowly eaten up by Apple and then the curtain will be pulled back to reveal most of it's premium service customers were created with smoke and mirrors.

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