Spotify’s chief strategy officer and chief content officer, Stefan Blom, has refuted the idea that the company’s free tier ‘is giving music away’.
Speaking at a Wall Street Journal-sponsored conference earlier this week, he insisted that the service’s branding and advertising-powered model was sustainable, profitable and here to stay – dismissing rumors that the company had considered dropping the option amidst increased criticism from artists.
“We monetize it, we monetize it well,” he said.
Fellow Spotify executive Troy Carter built on these comments, claiming that the free service is beneficial for both artists and customers.
“I don’t think we’re ever going to get to a world where everybody on the planet is going to pay for music,” he said.
“A user listening free with ads “may never convert to a paid subscriber…but they’ll be able to afford a concert ticket, they’ll be able to afford a t-shirt.”
The pair advised that Spotify would be looking to invest more in original videos and exclusives with artists as marketing tools but was hesitant about entering the content arms-race that has emerged between competitors Apple Music and Tidal.
