Spotify’s business model is one of the most exciting businesses created in the digital era.
With a business model that mixed subscription and ad-supported revenues, Spotify is among the few who managed to make this model work for media.
In fact, most attention-based businesses went for an ad-supported-only business model in the digital era.
Take the example of attention merchants like Google and Facebook.
Those companies converged primarily on an ad-supported business model.
In the opposite spectrum, companies like Netflix primarily relied on subscriptions to power up their business model.
Only recently, ad-supported and subscription-based business models are converging toward a hybrid model similar to Spotify.
Where you have a part of the business that premium members support and a part of the business that instead is supported by advertising.
Well, Spotify has both ad-supported and premium revenue engines built into its business model.
For instance, a company relying on ads, like Twitter, is now experimenting with subscriptions.
And a company like Netflix, which has been relying on subscriptions, is now turning on ads.
Thus, Spotify is really the business model that many are trying to emulate today, and one of the few which understood how to make it work at scale!
Read Also: How Does Spotify Make Money, Spotify Model, Who Owns Spotify, How Does Twitch Make Money, How Does SoundCloud Make Money, Who is Daniel Ek?, Who Is Martin Lorentzon?
Related Visual Stories
Spotify Advertising Business Model
Economics of the Spotify Business Model