Delhi University

College of Vocational Studies

Consumer Behaviour Study On Spotify

Course: Bachelor of Management Studies

Research Report on

Impact on Spotify users after the recent

update of October 2023

Lecturer:
Professor Shikha
College of Vocational Studies

Prepared by:
Rajeshwari Barewa
2K21/BMS/39
Semester V
Bachelor of Management Studies
College of Vocational Studies
 ABSTRACT

With the change in people’s music consumption patterns, music

streaming media enterprises have attracted more and more attention.
Spotify is one of the largest music streaming media enterprises at present,
and its rapid development has been attracting attention. The streaming
service is available for free, and has a premium subscription option.
Premium Spotify subscribers enjoy an ad-free experience, listen to music
offline, and more. Although Spotify has 36% of the streaming marketing
share, Spotify has not been profitable because of the large licensing costs
paid to the large music labels and has been running continuously under
loss for 2 years in India. However, to cover its losses and a shift towards
a subscription-based model, recently in the month of October 2023, the
company has restricted several key features for free account users to
encourage more and more premium subscriptions. This drastic change
has led to huge impact on the free tier users of India and to study this
drastic change, the current research study investigated the impact of
recent update on consumer behaviour of Spotify by conducting a survey.
Primary quantitative methods have been followed for collecting and
analysing reliable and relevant data associated with the research context.
The present research report emphases on studying the impact of recent
update on consumer behaviour of Spotify, which raises the consumers’
intentions and views towards the service providing and purchasing
behaviours.
 INTRODUCTION

For millennia, music has integrated itself into society across the globe,
serving both Cultural and emotional needs The development of the
Internet prompted the digitalization of music, which altered the product
and services available to Listeners and the way the music industry
operated. One example is music streaming services. Music streaming
services are services that offer access to digitized music without requiring
us to Download and use up a lot of storage on our devices. Music
streaming services can be divided into two categories based on their
source of Funding: an advertisement-based free model or a subscription-
based streaming model. The advertisement-based free model allows
individuals to utilize services for free, While constantly disrupted by
advertisements. Meanwhile, the subscription-based streaming Model
allows individuals to enjoy the services by charging them a subscription
fee and allowing Them to access specific features that are only available
to subscribers. Spotify is one of them, It is one of the biggest music
streaming channels in the world which is primarily Responsible for the
provision of legitimate music streaming services. It uses hybrid models
as a source of funding. They Offer ad-based free services as well as
subscription-based or premium services for their Customers. It is known
that from 2020 to 2021, premium services reported profits of roughly
€1.700 million, with revenues increasing by 23%, while ad-based free
services recorded profits Of 17%.

In 2018, Gimlet Media and Anchor were purchased by Spotify. Gimlet

Media concentrates on The narrative podcast industry and produces high-
quality audio material. Anchor, a platform for Creating podcasts, will
give Spotify the ideal value of enticing users to produce podcasts
Independently and streamlining the process. With this in mind, the shift
from “music to sound” has Begun with Spotify’s official opening of the
traditional podcast market. After digital piracy hampered Sales, this
business changed the way people listen to music and helped them get
acclimated to paying For it once more. And for artists, Spotify has also
changed the revenue model and given more opportunities to niche artists.
As the streaming music market becomes more competitive and Spotify
faces declining subscribers and continuous loss for years in India. To
minimise it’s losses Spotify is encouraging more and more premium
subscription by restricting some key features of free users. As per the
report, the company further says that it is making changes to the free tier
since the market has now matured. Spotify has been offering these
features for free since its launch in India in 2019, but it says that it is now
time to start charging for them in order to continue to invest in its platform
and offer a great experience for all users. Therefore, to study this drastic
change among users of Spotify this research is being conducted. In this
research, data were collected by using an online survey that is distributed
to young Adults of age ranges 15-30 who are using Spotify services in
India. The research was Conducted using a google form, and the results
were analysed using statistical analysis software. The result of this
research provides feedback for the streaming music services industries
To improve their marketing strategies’ performance based on customer
behaviour and psychology to increase sales of businesses. In addition, this
research benefits the other streaming music Services industries to
compare their marketing strategies and innovate the current marketing
Strategies.
 LITERATURE REVIEW

Emergence of Spotify:
It’s the 1960’s and the Beatles are at the peak of their careers. The
cacophony of excited teenage fans race to sift through limited vinyl
records of the Beatles after hearing Penny Lane on the radio in the
morning. They find a couple of favourite albums and bring them back to
add to their collections. Over the years, their rooms are brimming with
records, cassettes, and CDs. But in 2003, everything changed. With “1000
songs in your pocket”, Steve Jobs transformed the music industry with
the innovation of iTunes and the iPod. And then, 3 years later, there was
Spotify. Boasting more than 345 million users in 2021, Spotify has the
largest market share at 34%, with 200 years worth of songs. With all the
possible choices, you’d think that nothing would compare to that
afternoon you spent blissfully listening to each vinyl until you found the
perfect one. As music consumption advanced with technology, so did the
process of music discovery. Finding your next favourite song is no longer
as simple as turning on the radio and putting on your favourite station.

Paradox of Choice:
Our foraging ancestors spent days searching and building tools to hunt
for sustenance. Today, everything we need is within the touch of our
fingertips. But the irony lies in the price of progress—how we’re civilized
to death, as Christopher Ryan’s book suggests. With the increase of
production of goods, and therefore branding and differentiation, we’re
ironically crawling backward, once again foraging through hundreds,
even thousands, of options. This phenomenon is called the paradox of
choice: the more effort we put into choosing, the less we enjoy the
experience.

How the Paradox of Choice Transformed the Music

Industry:

With the number of songs multiplying and as the oversaturation of

information, media, and the news continues to affect every corner of our
lives, the simplification of music discovery is imminent. Spotify can be a
great place to find your next favourite song or artist, but it can be
overwhelming with over 70 million songs to choose from. Without
personalization, music discovery today can be an all-out nightmare. For
this reason, Spotify employee Matt Ogle revamped the Discover page to
what we have all come to know and love: Discover Weekly. He realized
that the antidote to the paradox of choice was simple: unique,
personalized mixtapes for every user. Users no longer have to spend
hours on end looking for new music. With all the data Spotify has from
its 340 million users each week, they curate a personalized playlist for
you filled with the favourite songs of people with similar music tastes.
Their algorithm is based on the fair assumption that if others with similar
consumer behaviour seem to be adding these songs to their playlists, you
may be interested in adding them too. Since the launch of Discover
Weekly, growing artists have had an opportunity to cast a wider net for
new listeners. A Spotify representative stated in an interview with Vox
that, “Ten billion times a month, listeners across both Spotify and Spotify
Premium stream a new artist they had never heard before. That means ten
billion discoveries every month; ten billion chances for artists to win a
new fan.” From the five years since its launch in 2015, Spotify users have
listened to over 2.3 billion hours of music. In fact, Discover Weekly
listeners spend double the amount of time on the app than those who don’t
use this function. The brand has since leveraged over the amount of data
from its hundreds of millions of users collected by the feature and has
created a product that can be sold to brands. Companies now have the
opportunity to sponsor a Discover Weekly. This means that their logo
will appear within the playlist and an ad in every spot for those who pay
for the freemium option of Spotify. Intending to design the shortest path
to a memorable musical experience, Spotify innovated further by offering
Daily Mix- a set of pre-mixed playlists based on your favourite music and
genres. Unlike Discover Weekly, it emphasizes a users’ favourite music
selection without focusing too much on music discovery. But that’s not
to say that they completely disregard the possibility of spreading new
music. Within each cluster of songs is a sly recommendation that
appropriately matches each playlist. Nice and easy for the typical lazy
and casual listener! Spotify is not alone in attempting to dodge the
paradox of choice. Apple Music, which holds 21% of the market share,
followed suit with Music Daily. It boasts the same idea as Discovery
Weekly but instead aims to be the “playlist that never sleeps,” feeding
users new songs the moment they wake up. The paradox of choice does
not stop at music discovery. It affects several aspects of our lives too.
With the growth of production, there is a wide selection of just about
everything—even water. Brands, through the collection of user data, have
been able to transform just about every type of purchasing experience.
Whether the culling of user data for the advantage of the company is
something users understand they are agreeing to, is a whole other
conversation entirely. This doesn’t stir away from the fact that user
experiences are evolving. For this, we can thank the further understanding
of consumer psychology and data collection. That being said, music today
no longer needs to be sought out in deliberation.

OBJECTIVE OF THE STUDY

➢ The main objective of this research study it to analyse the respondent

response modification impact on free users of Spotify after
restricting key features of Spotify application.

➢ To study the attitude of respondent toward new updates in app and

consumer behaviour relationship.

➢ To analyse the current state of music streaming market and it’s effect
caused by Spotify and the impact on other music service provider
app.

RESEARCH METHODOLOGY
For the analysis, this study used descriptive research methodology.
Descriptive research involves gathering data that describe events and then
organizes, depicts, and describes the data collection.

Primary Data :

• The survey data was collected through an online questionnaire with

the support of Google Form. The reason for using Google Form to
construct the online survey is because it has numerous features that
 are accessible for free and convenient to use compared to other
online Survey platforms.
• The link to the questionnaire was sent to the participants via social
media such as WhatsApp, Instagram and telegram.
• The participation was completely voluntary, respondents were
guaranteed anonymity and confidentiality So that they would answer
as honestly as possible.
• The Questionnaire consists of two different sections, in which the
first section consists of the Introductory questions that gives the
details of behavioural profile of the consumers before the change.
• The second section consist of the questions related to the main
research question. The research question are varied from respondent
to respondent as per the choice made by them in the last question of
1st section. After collecting the data, it was manually Recorded on
the Excel sheet.

Secondary Data:
Secondary data from different websites and articles has been used
for the background study of the music streaming industry and
Spotify. Through the internet, data about different music streaming
app is being used and trend analysis of Spotify. Previous Research
paper on Spotify is also considered for background study.

Research Design :

• A quantitative research method was adopted for this research

through a survey among the users.
• Sample was collected using simple random sampling.
 • Sample Size – 50
• The close-ended Questionnaire was used for data collection so as
to reduce the non-response rate and errors.
• Duration – one week

LIMITATIONS OF THE STUDY

There are following limitations of this research study:

➢ The age range of most of the participants in the current study is

restricted to those between the ages of 13 and 30. In order to obtain
results that are more representative of the population as a whole, the
research should include participants from a wider variety of ages and
educational backgrounds.

➢ The study that has been done up to this point is constrained because
there were only 50 samples collected altogether, which doesn’t
support the generalizability of the research findings.

➢ The study has confined to urban areas as it assumed that the rural
areas do not have good Internet connection yet, so they aren’t be the
regular user of Spotify. Hence the entire findings are limited and
refer to urban consumers only.

➢ The study is conducted only for 1 week, which is very short time
period for a proper and detailed analysis. As long time period gives
deep insights into the factors of the study.
 DATA ANALYSIS AND
INTERPRETATION

Demographic Analysis:
❖ According to the Survey, (figure 1.1) majority of the respondents
are from the age group between 18 and 25 years old which represent
63.2% individuals of the whole sample size. The following groups
fall under the age group of 13-18 (31.6%) and lastly, only 6 (3.5%)
respondents are falls under age group 25-40 years old. This shows
that most of the users of Spotify comes under 18-25 age group.

❖ As per the According to figure 1.2, the number of female

respondents is more than the male respondents. The number of male
respondents is 46% where as female respondents are 54% .

❖ As mentioned earlier, most of the respondents are students with

72% and 28% of the respondents are employed.

Age Group
Fig. 1.1 Gender
Fig.1.2

Male
Female

46%
54%
 Occupation
Fig. 1.3

28%

72% Student

Employed

Frequency of the time consumed by users:

❖ Before this new update, 71.1 % (figure 2.1) consumer uses Spotify
daily, which shows that till now Spotify has become an integral part
of consumer’s life. And 13.2% use Spotify on alternate days and
10.5% used occasionally.

❖ As per the survey, 52.6% users use Spotify upto 2 hours on a daily
basis, followed by 21.1% use upto 4 hours per day and 21.1% use
less than 1 hour per day and only 5 consumer use Spotify for more
than 4 hours.

❖ Figure 2.3, shows that 76.3% users has been using Spotify for more
than one year, which shows the high brand loyalty of Spotify.
 How often do you use Spotify?

Fig. 2.1

On an average, how much time do Fig. 2.2

you spent on Spotify per day?

How long have you been using

Spotify? Fig. 2.3
Preference Analysis of Spotify:

❖ As per the Survey, 97.4% users have chosen Music as the foremost
preference on Spotify which shows that Spotify has been providing
good qualitative music for years.

❖ Figure 3.2, shows that 39.5% users enjoy using Spotify during
travelling and Spotify has been a good companion for them,
followed by 34.2% use in their leisure time and 10.5% during
exercise or workout.

❖ Figure 3.3, shows that 78.9% users has been using freemium model
of Spotify and only 21.1% are using premium model of different
subscription plans.

What is your foremost listening

preference on Spotify?
Fig.3.1
 When do you prefer using Fig 3.2
Spotify the most?

What version of Spotify

you are using currently?

Fig. 3.3

Qualitative Analysis of Spotify:

❖ According to the survey, 31.6% users like the unique playlist such
as Daily weeks and discover weekends provided by Spotify and
44.7% responded normal towards creative playlists. This represents
that playlists of Spotify are still not upto mark.
 ❖ Different genres of Spotify have satisfied their users very well as
55.2% users are satisfied with this and only 13.1% does not like the
genres provided by Spotify. This represents that different genres
were quite well of Spotify but still improvement is required.

❖ As per the study, 44.7% users are satisfied with the song
recommendations by the Spotify and 15.8% are not. It means that
the algorithm of Spotify is enough to make its users happy but slight
improvement can make their users Delighted.

DATA ANALYSIS AFTER RECENT UPDATE

ON SPOTIFY

This analysis represents the change in behaviour of users of Spotify after

Recent Changes/update and shows the outcome of their views and
actions. [as now free users can no longer repeat, rewind, or play songs in
specific order without premium. They cannot even go forward or
backward in particular song and they cannot use shuffle option without
this premium subscription.]
❖ According to the study, after this new update 65.8% Spotify users
dissatisfied with this new change on application and 10.5% are
neutral in this case. This shows that the recent update was not liked
by the users and they are unhappy with that.
 25

20

15

10

0
Highly Dissatisfied Neither Satisfied Highly Satisfied
Dissatisfied Dissatisfied Nor
Satisfied

Figure 4

❖ To know the next move of the users after the change 4 options are
provided in the survey and the following results are came out. 60.5%
(figure 5) users choose to use Spotify in freemium model, whereas
13.2 % opt premium model of Spotify but 18.4% found other music
streaming app better option. This shows that Spotify has gained few
premium users but also incur the loss of few consumers

30

25

20

15

10

0
Freemium Premium Switch to Another Not a User of any
App app

Figure 5
❖ From the survey, the possible reasons of free tier users for using
Spotify without premium subscription are found out and the results
are shown as follows. According to 43.5% users choose high
subscription fee as the main reason, 17.4% users say the fee charge
is not worth it whereas 17.4%, 13% and 8.7% found good sound
quality, easy access to music and podcast and access to creative
playlists respectively in freemium model as well so why opt for
premium.

14

12

10

0
High Not worth the Access to Good Sound Access to
Subscription money limited music Quality Creative
fee and podcast playlist

Figure 6

❖ Reasons has been asked from the users who has discontinued the
usage of Spotify and the results are as follows. 42.9% says high
subscription fee and 14.3% says the fee is not worth the money,
whereas 28.6% found other music streaming app as a better option
and 14.3% the difficulty in using the app.
 7

0
High Subscription Not worth the Found other better Difficult to use
fee money option

Figure 7

❖ Figure 8 shows the main factors for which users opt for premium
model of Spotify as 64% of the users chooses No ad interruption as
the reason followed by 37% users choose interesting genres as the
reason.

16

14

12

10

0
Limited ads Interesting High song Creative Easy to
between music Genres qulaity Playlist Download

Figure 8
COMPARISON BETWEEN EFFECT ON USERS OF
FREEMIUM MODEL AND PREMIUM MODEL OF
SPOTIFY

Basis Freemium Premium

52.2% users spent less time

then earlier and 34.8% spent
Premium users spent
Time same as earlier Premium
same time as earlier
users spent same time as
earlier.

73.9% users are not satisfied 60% users are satisfied

Ad Experience
with the ads with the ads

56.5% users are dissatisfied 80% users are satisfied

Convenient Experience
with convenience. with their convenience.

Kind of Podcasts and 39.1% users are satisfied 75% users are satisfied
Audiobooks with the podcasts. with podcasts.

30.4% users feels change in 20% users feels change in

Sound Quality
quality after the change. quality after the change.

Limited or No ad
Accessibility of different
interruption is the most
Most Satisfying Factor music is the most satisfying
satisfying factor of this
factor of this model.
model.

55.8% users agree that their 27% users agree that their
Change in Experience prior experience has been prior experience has been
changed. changed.

73% users dissatisfied with

No impact was seen on
Overall Experience the overall Experience after
users of this model.
this change.
COMPARISON BETWEEN EFFECT ON USERS OF
SPOTIFY AND USERS OF ANOTHER APP

ANOTHER MUSIC APP

BASIS SPOTIFY USERS
USERS
According to 28.6% users
According to 43.8% users ad
Frequency of Ad ad breaks are quite often,
breaks comes after every 15-
breaks ad breaks comes after
20 minutes.
every 2-3 tracks.

Ad Experience 27.4% users rate 3.5 out of 5 57.2% users rate 3 out of 5
for their ad experience. for their ad experience.

64% users like the 42.9% users like the

Availability of
availability of different availability of different
Different Genres
genres of Spotify. genres of the app.

78.4% users are satisfied 84.6% users are satisfied

Quality of Music with the song quality of with the song quality of
Spotify. the app.

53.2% users are satisfied 25.6% users are satisfied

Availability of
with the availability of with the availability of
Podcasts and
Podcasts and Audiobooks of Podcasts and Audiobooks
Audiobooks
Spotify. of the app.

73% users are dissatisfied Only 21.1% users are

Convenient
with the convenience of dissatisfied with the
Experience
Spotify after this change. convenience of this app.

The overall Experience of

Spotify users are well and Almost 78% users are
Overall
good before this recent happy with their music
Experience
update but now it has streaming app.
changed.
 FINDINGS OF THE STUDY

From the Research Study the final results came out which are as
follows:

❖ From the data it can be interpret that Spotify has a good brand
loyalty as it has most of the regular consumer who has been using
their services for more than one year. And they spend enough time
on Spotify on a daily basis.

❖ Although Spotify has a regular consumer but among them only

21% are premium users while other are freemium, which indicates
one of the main reason of company running under losses.

❖ As per the data, when Spotify restricted on some key features of

the app. Users found it very disappointing, as the restrictions have
been imposed on the basic features which leads to loose of
consumer control on the App.

❖ After this change, the interval of ad breaks between music has also
increased for free users so now the ad breaks are quite often and
38% users are not happy with this.

❖ Not only this, after this new update Spotify has also looses it’s 1st
position in music streaming market since consumer starts rating 1
star to the app and posting continuously negative comments.
❖ As a result, the app looses it’s few regular consumers and switch to
other music streaming app, which is a golden opportunity for other
music streaming platforms.

❖ Also more than half almost 52% users decrease their per day usage
time and due to unavailability of basic control over the app
consumer found it inconvenience to use.

❖ 60% users are still using Spotify in freemium version. Access of

limited music, good sound quality and access to creative playlists
are foremost reason for this.

❖ 60.8% users agree on the statement that their prior experience has
been changed after this recent change.

❖ Users who found other app as a better option, among them 57.1%
vote for YouTube music, 28.6% vote for Jio Savan and 14.3% vote
for Wynk. And all users are enjoying their services in freemium
version and 85% users are happy and satisfied with their services.
This shows that these 3 brands are next best competitor of Spotify
and has competitive advantage over Spotify.

❖ No change has been found among premium users of Spotify after

this update. This shows there is no impact of the recent update on
the premium users of Spotify.
❖ According to the data, it was found out that 60% of premium users
chooses plan of Rs 179/- (family plan) per month whereas 40%
chooses Rs 119/- (individual plan) as their current plan.

❖ For Premium users the most satisfying factor of premium version is

that there is no add interruption between the music. Users like this
feature the most about this premium version.

❖ From the study, it is found out that till now most of the users are
still using freemium model which shows that the motive of the
company behind this update was not fulfilled yet.
 APPENDIX A : QUESTIONNAIRE

Thank you for taking part in this Survey. I am a 3rd year student and for
my studies, I am conducting research about the new updates on Spotify
application. I would like to hear from you about your experiences and views
towards Spotify and its services. The survey would take only 10 minutes,
and your responses are completely anonymous. It is requested to please be
honest with your response as all the information is for academic use only.

Your time and efforts are highly appreciated.

{ Recent Changes/update In Spotify : Free users can no longer repeat, rewind or

play songs in specific order without premium. They can't even go forward or
backward in particular song and they can't use shuffle option without this
premium subscription.}

Q1 Your Age:

o 13- 18 years
o 18-25 years
o 25-40 years
o More than 40 years

Q2 Your Gender:

o Male
o Female
o Other:

Q3 Occupation :

o Student
o Employed
o Homemaker
 o Other:

Q4 How often do you use Spotify ? (Before the recent update)

o Daily
o Alternatively
o Occasionally
o Rarely

Q5 On an average, how much time do you spent on Spotify per day ? (Before the
recent update)

o Less than one hour

o 1-2 hours
o 2-4 hours
o More than 4 hours

Q6 How long have you been using Spotify?

o About one month

o About 6 months
o About one year
o More than one year

Q7 What is your foremost listening preference on Spotify ?

o Music
o Podcasts
o Radio
o News
o Audiobooks

Q8 When do you prefer using Spotify the most?

o Driving
o Travelling in public transport
o Leisure time
 o Reading/Working
o Exercise/Workout
o Other:

Q9 What version of Spotify you are using currently ?

o Free
o Premium
o Premium (Student)
o Premium (Family)

Q10 On a scale of 1 to 5, how likely would you rate the unique playlist (daily
mix, discover weekly) provided by Spotify.

o Very Unlikely
o Unlikely
o Neutral
o Likely
o Very Likely

Q11 On a scale of 1 to 5, how satisfied are you with different genres provided by
Spotify.

o Highly Unsatisfied
o Unsatisfied
o Neither unsatisfied nor satisfied
o Satisfied
o Highly Satisfied

Q12 On a scale of 1 to 5, how satisfied are you with the song recommendations
on Spotify

o Highly Unsatisfied
o Unsatisfied
o Neither unsatisfied nor satisfied
o Satisfied
 o Highly Satisfied

Q 13 On a scale of 1 to 5, how satisfied are you with the recent update/changes

on Spotify.

o Highly Unsatisfied
o Unsatisfied
o Neither unsatisfied nor satisfied
o Satisfied
o Highly Satisfied

Q14 After this new update/changes, what is your current state.

o Freemium User of Spotify

o Premium User of Spotify
o Switch to another music provider app
o Not a user of any app

Research Questions:

Q1 How much time do you spent now after this new update ?

o Same as earlier
o Less than earlier
o More than earlier

Q2 How often are ad breaks on Spotify ?

o Every single track

o Every 2 or 3 track
o Every 15-20 minutes
o Every 30-40 minutes

Q3 On a scale of 1 to 5, how likely would you rate your add experience on

Spotify.
 o Very Unlikely
o Unlikely
o Neutral
o Likely
o Very Likely

Q4 On a scale of 1 to 5, how likely would you rate the convenient experience on

Spotify (for e.g. on basis of easy to use, downloading, sharing with friends, etc.)

o Very Unlikely
o Unlikely
o Neutral
o Likely
o Very likely

Q5 On a scale of 1 to 5, how likely would you rate the Podcasts & Audiobooks
available on Spotify.

o Very Unlikely
o Unlikely
o Neutral
o Likely
o Very likely

Q6 Which of the following reasons best describes the answer of using free
version of Spotify.

o High Subscription Fee

o Not worth the money
o Access to limited music & podcasts
o Good Sound quality
o Access to limited Playlists
o Other:

Q7 What features makes you a regular user of Spotify ?

 o Creative Playlists
o Access to Unlimited Music
o Access to podcasts & audiobook
o Interesting genres
o Good music quality
o Limited ads
o Other:

Q8 After this new update, did you experience any change in sound quality?

o Yes
o No

Q9 How much do you agree on the statement : “New updates on app has changed
my previous experience on Spotify.”

o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree

Q10 What is the unique thing that you like the most about Spotify before this
new update ? ( please be descriptive)

(Short answer)

Q11 Which Premium Plan you are currently using ?

o Mini - ₹7/day
o Individual - ₹119/month
o Duo - ₹149/month
o Student - ₹59/month
o Family - ₹179/month
o Other:
Q12 How satisfied are you with the price for premium on Spotify?

o Highly Unsatisfied
o Unsatisfied
o Neither unsatisfied nor satisfied
o Satisfied
o Highly Satisfied

Q13 What is the most satisfying factor of Spotify Premium ?

o No add interruption
o Offline Music & Podcasts
o Easy to skip multiple songs
o Song quality
o Access to podcasts & audiobook
o Other:

Q14 How much do you agree with the statement : “Because of this new update
on Spotify, I become a premium user of the app”

o Strongly disagree
o Disagree
o Neutral
o Agree
o Strongly agree

Q15 On a scale of 1 to 5, how satisfied are you with your overall experience on
Spotify.

o Highly Unsatisfied
o Unsatisfied
o Neither unsatisfied nor satisfied
o Satisfied
o Highly Satisfied

Q16 Please Choose appropriate reason for not using Spotify.

 o High subscription price
o Not worth the Money
o Difficult to use
o Found other better option
o Other:

Q17 What other applications do you use for listening music ?

o Apple Music
o Amazon Music
o YouTube Music
o Gaana App
o Wynk
o Jio Savan
o Other:

Q18 In which version do you use the particular app

o Free
o Premium

Q19 If you are a premium user of that app, please specify the plan currently you
are using (for e.g ₹149 per month)

(Short answer)

Q20 What is the most satisfying factor of this app ?

o Limited ads between music

o Easy to Download
o Interesting genres
o High song quality
o Easy access to number of podcasts & audiobook
o Creative Playlists
o Other:
Q21 How often are ad breaks on this application.

o After each track

o After 2 or 3 track
o After 15-20 minutes
o After 30-40 minutes

Q22 In comparison to Spotify, how likely would you rate your ad experience on
this app.

o Very Unlikely
o Unlikely
o Neutral
o Likely
o Very Likely

Q23 In comparison to Spotify, how likely would you rate the availability of
different genres of songs on this app.

o Very Unlikely
o Unlikely
o Neutral
o Likely
o Very Likely

Q24 In comparison to Spotify, how likely would you rate the quality of music of
this app.

o Very Unlikely
o Unlikely
o Neutral
o Likely
o Very Likely

Q25 In comparison to Spotify, how likely would you rate the Podcasts &
Audiobook service of this app.
 o Very Unlikely
o Unlikely
o Neutral
o Likely
o Very Likely

Q26 In comparison to Spotify, how likely would you rate your convenient
experience on this app ( for e.g. easy to use, download, sharing with friends,
making your own playlist, etc.)

o Very Unlikely
o Unlikely
o Neutral
o Likely
o Very Likely

Q27 What is the unique thing that you like the most about this app ? (Please be
descriptive)

(Short answer)

Q28 In comparison to Spotify, how satisfied are you with the overall music
experience with this app.

o Highly Unsatisfied
o Unsatisfied
o Neither unsatisfied nor satisfied
o Satisfied
o Highly Satisfied
 REFERENCES

➢ Spotify restricts free features for Indian users, here is what is different –
India Today https://www.indiatoday.in/technology/news/story/spotify-
restricts-free-features-for-indian-users-here-is-what-is-different-2447816-
2023-10-12
➢ Spotify and the Consumer Psychology Behind Choice
https://www.popneuro.com/neuromarketing-blog/spotify-consumer-
psychology-choice-decision-making-happiness-music-discovery-paradox-
of-choice
➢ Analysis of The Trend of Spotify – Research Gate
https://www.researchgate.net/publication/366295843_Analysis_of_The_Tr
end_of_SpotifyAnalysis
➢ Understanding the Factors Influencing ... – eJournal – UNSRI
https://ejournal.unsri.ac.id/index.php/jmbs/article/download/19729/7459
➢ Spotify’s customer segment: impact and behaviour of ... – LuissThesis
http://tesi.luiss.it/35215/
➢ A Case Study on Spotify Marketing Strategy – Simplilearn.com
https://www.simplilearn.com/tutorials/marketing-case-studies-
tutorial/spotify-marketing-strategy
➢ Spotify: Strategic Plan and Analysis
https://scholarworks.umt.edu/cgi/viewcontent.cgi?article=1346&context=ut
pp
 CONCLUSION

Music streaming has completely changed the original music market

consumption model, and Spotify, as one of the largest streaming media
companies in the world, continues to attract public attention for its
development. Since 2018 it’s financial growth slowed sharply, profit
earned by subscription Fees and advertising, is too not enough plus other
music streaming media products constantly fierce competition which
makes the existence in the market even more tougher. Recently to reduce
their losses Spotify had encouraged more and more premium
subscriptions by restricting several key features for free accounts and it’s
impact was studied under this research. With these study and findings, a
precise conclusion has been reached that though Spotify has restricted on
key features but users still didn’t give up on Spotify, majority is still using
Spotify in freemium model although they are very disappointed with this
update but continued to use it under the freemium model with the hope
that One day Spotify will come back in its original form and will rule the
hearts of the consumers again. It's accessibility to unlimited music and
podcast at a single place and good sound quality makes the consumer to
be a long time user. It is correct that some of them found other application
as a better option but they agree with the fact that on some features no
one can beat Spotify. In addition, It was determined that only 1 out of 20
users has changed their model from freemium to premium after this new
update which shows that the motive of the company behind this update
was not fulfilled yet but will possible in the long term in the future, or
may be they loose their consumers but it depends on the next strategy
followed by Spotify. But the challenges for Spotify do not end there.
There is always a need to try to keep up with Industry innovations, to
maintain a competitive advantage by differentiating itself from the
competition, In an increasingly technological society, this is what
customers are looking for: innovation, Trust, image, usefulness and ease
of use.

Our suggestion to Spotify is to focus more on attitude variables, such as

how to make customers feel that it is necessary and enjoyable to subscribe
to their premium services can help them in much better ways. Also
Spotify should focus on three parts for the future to reduce their losses.
The First is to upgrade their algorithms to better understand user needs.
The second is the elimination of these record company middlemen would
reduce the licensing fees and can start Its own record label so that it can
reduce the cost of buying the rights and also can create content like
Netflix. Third, it can sell its own hardware products, which can make its
profit model more diversified.