Prime Highlights:
- Spotify launches in-app messaging, letting its 696 million users send songs and messages directly to each other.
- The new feature aims to increase user engagement and make higher subscription fees more appealing.
Key Facts:
- Ads currently make up 11% of Spotify’s revenue, below the company’s 20% target, and fell 0.7% compared to last year.
- The Messages feature is available to Free and Premium users aged 16 and above on mobile devices, with options to block or opt out.
Key Background:
Spotify is adding a new way for its users to connect. Spotify now lets its 696 million users message each other directly within the app. The feature, simply called Messages, is being introduced this week across select markets for both Free and Premium customers aged 16 and above, using the Spotify mobile app.
The move is aimed at keeping users on the platform longer. Instead of switching to other apps to share a favorite track, Spotify users can now recommend songs, albums, or playlists directly within the service. The company emphasizes that Messages is designed to complement, not replace, traditional communication channels like WhatsApp or Instagram. Nevertheless, developing another incentive to remain on the app, Spotify is raising the chances of greater involvement.
Spotify aims to expand its advertising business so that ads account for 20% of its total revenue. But as of June, ads only brought in 11%, which was 0.7% lower than the same quarter last year. By encouraging more time spent on the platform, Spotify could strengthen its case when negotiating ad rates, a key factor in improving revenue.
In addition, Spotify recently increased subscription prices for Premium users across many international markets outside the United States. The added messaging feature can help justify the increased price of the subscriptions because users will be able to interact more with friends and their locality.
Users won’t be able to message artists like Dua Lipa for now, but Spotify says everyone can manage how they use the feature. People will have the option to block or turn off Messages, keeping privacy and control in their hands.
With rising competition in the streaming industry, Spotify’s latest move signals a shift toward becoming more than just a music player. Through interaction, the company is optimistic that it will cement itself as a place where individuals not only listen- but also connect.
