More than 20% of Spotify's listeners convert to the subscription
service, Spotify CEO Daniel Ek said during a press event at
Spotify's New York headquarters on Wednesday. Spotify has
previously claimed more than 24 million monthly active listeners, 6
million of whom are paid subscribers. Mr. Levick declined to
provide updated user numbers, but said the service expanded to 20
new markets internationally on Wednesday for a total of 55 markets.
A majority of Spotify's listeners use the free service, which is
music to advertisers' ears. However for Wednesday's mobile
announcement to resound on Madison Avenue as loudly as Spotify
might hope, the service will need to prove it has listeners'
"Agencies and marketers are interested in the platform. However,
[Spotify's] mobile consumption is about 20% currently so there is
not a lot of scale or opportunity on mobile," said Lauren Russo,
senior VP and managing director of audio and promotions at
Horizon Media, in an email.
Until Wednesday's roll-out, advertisers have been limited to
Spotify's radio service on mobile. Ms. Russo's clients have been
purchasing Spotify's radio ads, but she noted those are primarily
desktop impressions. She added, "Digital Audio plans are typically
considered and evaluated 'bundled' based on how they align with the
Mr. Levick said he expects Spotify's usage to mirror overall
mobile-versus-desktop consumption trends over time.
Spotify also announced on Wednesday that it has beefed up its
tablet apps. Having observed what Mr. Ek called " a rapid increase
of listening on tablets in the home instead of listening on
computers," the company is porting the free ad-supported desktop
service to the iPad and Android tablets. The tablet apps will now
mimic the ad-supported desktop experience, meaning that people can
listen to any song at their choosing but will be shown ads and be
unable to listen to songs offline.