Two Million People on Spotify Figured Out How to Block Ads

27 March, 2018, 18:56 | Author: Bennie Parsons
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But millions of users have been bypassing the monthly fee of $9.99 to enjoy Spotify Premium service effortlessly by using old-fashioned ad-blocking applications.

As Reuters reports, roughly two million of Spotify's users have been utilising various means in order to access ad-free versions of the service without paying. They use unauthorized apps that make it possible to "disallow" the limits of the free service. In 2017, revenue grew 39 percent year-over-year.

As previously reported, Spotify has cracking down fraudulent users, and is banning individuals who are stealing Premium benefits. As the world's largest music streaming service, there is a lot of buzz surrounding the company's IPO. Spotify said the accounts are still safe but access from those apps would be disabled. The company recognized that this illicit act is a huge loss of potential subscribers due for payments aside from reaching them with the advertisement. The 2018 sales forecast compares with the Stockholm-based company's long-term target for revenue to grow between 25 and 35 percent, which it spelled out for investors earlier in March. Social media company Snap was sued a year ago in a securities class action suit that alleged it made false and misleading statements about its user growth, per a separate Variety report.

Spotify are about to float the company on the New York Stock Exchange hence the assessment of users.

We already knew that Spotify was trying to guide public attention to its platform growth rather than profits, as it looks to out-maneuver rivals such as Apple and Google.

As for premium users, it suggests between two to five-million users will pay for the service in Q1 2018, adding and a further 20-million by the end of the year.

This may increase the soaring problems in the industry already where artists earn very little amount for their painstaking work.

The streaming music company expects its operating shortfalls to improve from a $500-million loss to a $409-million loss, with $50 million being tied to one-time IPO costs.


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