Spotify Syncro

Challenge:

Spotify identified the following challenges with its Premium subscription offering:

  • 52% of users do not believe that the Spotify Premium subscription is worth the price.

  • 73% of users think Spotify is no different from its competitors, despite a higher premium cost.

  • Unauthorized modifications of songs (sped-up, slowed-down, reverb versions) are shared on platforms like TikTok and Instagram, leading to copyright issues.

  • Users feel a lack of ownership over music they pay for, with limited ability to personalize or customize tracks.


Solution:
  • Customization Features: Introduced pitch and speed changers within the app to allow users to modify songs to their liking.

  • Creative Mode: Allows users to save customized versions of songs in separate playlists, providing a sense of ownership and creativity.

  • Altered Mode: Offers pre-customized songs based on global trends and user preferences.

  • Trending Section: Users can discover and engage with viral customized songs, boosting user engagement.

Results:
  • Increased Engagement: The new customization features led to higher user retention and engagement, particularly among the 18-34 age group.

  • Differentiation: Spotify now stands out from competitors like Apple Music and YouTube Music due to unique music customization features.

  • Revenue Impact: Projected increase of $200 million in subscription revenue in the first year, with an Average Revenue Per User (ARPU) increase by $1.50.

  • Copyright Compliance: Customization within the app reduces unauthorized modifications, mitigating legal risks.

  • Senior Staff Pitch: This solution and its potential impact were successfully pitched to senior staff at Spotify, gaining support for the initiative and aligning product development with strategic business goals.

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