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Spotify Premium Podcasts Strategy

Product Strategy · beginner

Spotify currently offers free and premium music, and free podcasts. Should Spotify introduce a separate paid subscription tier specifically for exclusive, premium podcasts?

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Pavlo’s approach

First we should check how podcasts affect the overall users behaviour. They could either be a free hook for free users to convert into premium music users or be a good asset to sell them to increase the income. To answer the question we should check the following indicators:

  • How many users start using the product to listen free podcasts?
  • How many of such users start listening to music? And after that what's the % to be converted into paid users?
  • How many of free users continue listening mostly podcasts?

Based on the answers we can see if the amount of users who continue listening podcasts but are not converting is more than 50% then we can introduce paid podcasts for them.