![]() ![]() ![]() Spotify Audience Network is the underlying advertising infrastructure that supports its ad-supported user base. In addition, the ad-supported stream is getting more and more interesting as Spotify is ramping up its advertising network efforts. The ad-supported revenue stream, while it has lower gross profit margins, it works as a sales funnel for the company to attract and retain premium members. In fact, over time, free users likely convert into premium members, and they are retained for a long time. The interesting part is that the ad-supported side of the platform is self-sustaining, and it works as an excellent funnel for Spotify to attract as many premium members as possible. Of these, 295 million premium members and 205 million ad-supported members. ![]() Indeed, by 2022 Spotify had a total of 489 million users. Spotify follows a freemium business model, where it leverages a powerful free app with hundreds of millions of users. By 2022, Spotify had 489 million users, of which 205 million premium members and 295 million ad-supported users. Of these revenues, 87.4% or €10.25 billion came from premium memberships, while over 12.6% or €1.47 billion came from ad-supported members. Founded in 2008 with the belief that music should be universally accessible, it generated €11.7 billion in 2022. Spotify has a free ad-supported service and a paid membership. Spotify is a two-sided marketplace where artists and music fans engage. Martin Lorentzon’s net worth is highly tied to the market valuation of Spotify. Indeed, in 2023 with 11.5% of Spotify’s shares, he’s worth around $2.5 billion. Read Also: Who is Daniel Ek? How much is Martin Lorentzon Worth? Martin Lorentzon is the co-founder and one of the principal shareholders of Spotify. There, he reportedly told classmates of his ambition to become a billionaire by selling one matchbox to every person from China. Lorentzon’s passion for business harks back to his time at primary school. Martin Lorentzon is a Swedish entrepreneur best known as the co-founder of the music streaming platform Spotify and digital marketing company Tradedoubler. Digital Business Models Podcast by FourWeekMBA.Business Strategy Book Bundle By FourWeekMBA.An Entire MBA In Four Weeks By FourWeekMBA.100+ Business Models Book By FourWeekMBA. ![]()
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