My 2 cents on this -
Charging for something that was previously āfreeā is always a major no-go decision in most cases.
I have tried experimenting this personally, and have faced similar backlash resulting in us shutting down that experiment.
In this case, the next course of action depends on Spotifyās strategy.
They may want to pivot to a purely paid app direction slowly.
the freemium formula of having millions of free users who arenāt gonna buy the subscription may not be working well for them. And they may just decide to cut the herd thin and have only willing to pay customers.
In a mature product like Spotify, they need to monetise their users and ad-based revenue might not be working too well.
In an app where users passively listen to songs/podcasts, click through rates on ads must be lower than that of YouTube where your attention is on the app.
Hence, only monetisation lever double down would be paid subscriptions.
Sure it would lead to poor reviews and people leaving the platform but Spotify may see it as
- freeloader users leaving who would have never converted
- poor reviews being a knee jerk reaction & this to die down slowly
- other competitors introducing similar limitations and this becoming a new benchmark across apps
Itās an interesting watch for sure