Spotify’s leadership is doubling down on an unprofitable strategy

Jim Fosina of Fosina Marketing Group adds commentary to Amy Wang’s (Quartz business reporter) article titled Spotify’s leadership is doubling down on an unprofitable strategy

 

  • Such a strong stance implies Spotify’s free tier is here to stay. “There’s going to be a leveling of free and a leveling of paid, and Spotify is going to keep a foot in each camp as they make that transition [to going public],” says Jim Fosina, CEO of subscription marketing firm Fosina Marketing Group, which has worked with companies like Kraft and Disney. “Freemium is not a new idea—that consumer purchase behavior has been out there for a very long time.”