67% of Americans Have Never Even Heard of Spotify...

Friday, March 15, 2013
by Paul Resnikoff

So, is that good news, or bad news? This finding comes from an exhaustive survey that ultimately involved nearly a million respondents. This section, conducted by none other than EMI through its Global Insights research group, focuses on what people have actually heard of.

"If you walk out and talk to someone on the street, it's very likely you'll get a response like this," EMI's Renato Granieri told an audience at SXSW on Thursday.

"Two people in three, have never heard [of Spotify]. So are we focusing on the right channels?"

Interesting question. The news comes right on the heels of another Spotify milestone: on Tuesday, Spotify CEO Daniel Ek boasted 6 million paying subscribers, with 24 million active users.

But is that good? In the same session, media analyst Mark Mulligan deflated the balloon by pointing to some serious growth challenges. For starters, a massive number of first-time Spotify users abandon the app, with the number of remaining free and paying subscribers just a fraction.

Indeed, retaining and adding subscribers is a seriously impressive feat. "For every 400,000 customers that Spotify kept, they lost 1.5 million," Mulligan observed while presenting year-2011 financial and subscriber data. "They had to get 1.9 milion customers a month just to hold 400,000, and they're giving away free music."

"Any subscription business is a churn-heavy business. Rhapsody is spending a lot of effort just to stay still."

And, Spotify isn't the fastest-growing streaming platform, not by a long shot.

Written while listening to Machinedrum, and random SXSW background noise.

Comments Closed

Comments (11)

HansH Friday, March 15, 2013

Good news.

Visitor Friday, March 15, 2013

They're too busy on the pirate bay. Spotify? What's that?

Visitor Friday, March 15, 2013

Just to give some perspective on those ten year old stats for Last.fm: http://www.guardian.co.uk/media/2012/oct/04/last-fm-reports-loss?INTCMP=SRCH

That was a couple of months before they decided to no longer have the option for people outside the US/UK/Germany to get a payed subscription.

*Mumbles something about Hardlopers zijn doodlopers*

In latinoamerica is not known Saturday, March 16, 2013

Just say , a few of latinoamericans know spotify, we are under the control of itunes, and thats bad.

R.P. Saturday, March 16, 2013

as I been saying, Spotify = win.

Visitor Sunday, March 17, 2013

Most everyone worldwide are only interested in free radio. They are not interested in actively searching and managing a so-called unlimited library. Look around and what do you see among friends and family members.

Visitor Sunday, March 17, 2013

If apple iTunes was a Swedish corporation, it would be that country's national badge of honor instead of Spotify.

Champion Sunday, March 17, 2013

This is great news for future growth of the service.

Mack Monday, March 18, 2013

What about Deezer?

PTSoundHound Tuesday, March 19, 2013

Doesn't surprise me in the slightest. I recall a meeting I had in London about four years ago in which the nice lady on the other side of the table had never heard of iTunes. Wouldn't have minded so much except it was in the offices of a major label and she worked in the marketing department!

Ankh Entertainment Tuesday, March 19, 2013

Whoa, we were just talking this same subject up to a colleague. A lot of online is hype and unless one undertstands the original model of industry business, online is sheer madness. Only a hand full of people are making money and not the artst, we see the numbers. Lots of lawsuits on copyright infringement going on right under our very eyes. Spotify, MySpace, they wer all supposedly the new frontier.

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