Spotify may allow free users to skip all ads

Avatar By Le Williams | 2 years ago

Music streaming service Spotify may extend an opportunity for users of its ad-supported music streaming service, expanding the option to skip ads to free users. Presently. the option is available to all users of its ad-supported service in Australia, Spotify confirmed in a statement.

The goal behind the expansion is allowing its users to personalize the advertising they hear or see on Spotify, skipping ads they do not prefer to view.

“We launched Active Media, skippable audio, and video ads, in Australia for now and will consider expanding to additional markets in the future,” said Spotify in a statement. “We are committed to our freemium model and will continue innovating our products to ensure the best experience on both our free and premium tiers.”

In an interview with Adage, Danielle Lee, Spotify’s head of partner solutions, compared it to the company’s “Discover Weekly” feature that creates a tailored playlist based on listening habits and preferences. Spotify believes users will only skip ads that are not of interest to them, allowing the company to better curate ads.

“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,” Lee told Adage.

Spotify currently operates in 65 markets worldwide. The company boasts 83 million paid subscribers and 180 million monthly active users.

The ad-supported one is critical for Spotify as it competes with chief rival Pandora for advertising dollars. According to Spotify, the ad market is estimated at $1.6 billion.