Spotify is one of the biggest music streaming service around the world. As of recent reports, the company has managed to get about 83 million paid subscribers by the second quarter of 2018. One of the biggest advantages of having a paid subscription on Spotify is that it lets you avoid ads and gives access to some premium content on the platform. However, now a new report suggests that Spotify will soon allow its non-paying subscribers to skip ads as well.
According to a report from AdAge, Spotify is currently testing a feature in Australia, which allows free subscribers to skip ads they don’t like. On the flipside, it is also keeping a track of ads that a customer does not skip. By doing this, the company hopes to understand its user’s preferences better and cater ads accordingly. Spotify’s global head of partner solutions, Danielle Lee states that the new strategy works on the same lines as Spotify’s “Discover Weekly” feature, which suggests playlists according to a user’s listening habits.
AdAge also quoted Lee saying, “Our hypothesis is if we can use this to fuel our streaming intelligence, and deliver a more personalized experience and a more engaging audience to our advertisers, it will improve the outcomes that we can deliver for brands.” The new feature, dubbed as “Active Media” is currently available only in Australia, but the company plans to roll it out globally soon.
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The company stated that advertisers do not have to pay for the ads that users will skip. Essentially the company is betting it ads revenue on the fact that it can serve better ads to its listeners in the future. Spotify currently has about 180 million monthly active users, out of which approximately 101 million are free subscribers. Its total ad revenue was stated to have totaled at $158 million recenlty.