Music was expensive (~$20 for every album) and the alternative was paying with your time to find music in less straightforward means.
It was a burning pain for a lot of people.
Then Spotify came along and let anyone signup for a generous free trial. All of a sudden everyone could play any song they liked within seconds.
So they give a huge amount of value upfront, and only after a few months do they start to restrict some features to paid accounts only.
Importantly, in the free trial you save songs, discover new ones, build habits and share it with friends.
Once the trial is up, a lot of friction stands in the way of moving to ‘Youtube2mp3’ or even another music streaming app.
For most it’s an easier decision to just pay the $10/month.
I know what you’re thinking… Cool, but a freemium strategy isn’t anything crazy special.
You’re right, but Spotify has achieved exceptionally high conversion rates.
Most freemium apps have a free-to-paid conversion rate of 1%. Even back in 2012 Spotify was converting 27%. Now it’s more like 43%.
Why does freemium work so well for Spotify?
They strike just the right balance between giving value upfront for free and withholding features to make the free plan feel a little restrictive.