B2C · music streaming app

How Spotify grows

2 tactics and 1 figures from 3 interviews.

About Spotify

Business model: Freemium subscription with family plan

As described in the interviews, not independently verified.

Spotify's 2 tactics

Sweatcoin · B2C · app that pays you to walk

Let users swap coins for 3 free months of Spotify or Apple Music

Founder says users loved it; instant rewards with no shipping delay

During COVID, added digital rewards from subscription services such as Spotify and Apple Music: the first three months are paid in sweatcoins, after which the user pays cash. Digital rewards avoid slow physical fulfilment, which matters for instant gratification.

Workedpartnershipsretention

Sub Club by RevenueCat · 2025-03-05

Spotify · B2C · music streaming app

Offer a family plan so one subscriber can add the rest of the household

Cited as user expansion from a single acquired customer; no numbers

Launch a family plan: acquire one family member (e.g. the mom), who then adds the dad and kids under a higher-priced family subscription, expanding revenue from one acquired customer.

Unknownupsell-expansionpricing

Sub Club by RevenueCat · 2024-10-02

Spotify by the numbers

Metric	Value	Context	Said in
cost	USD 1,000M approximate	Invested more than $1B into podcasts: content, hosting, ad targeting, networks	Sub Club by RevenueCat 2023-10-04 27:45

Topics

Partnerships and co-marketing1 Upsells and expansion revenue1 App retention and churn1 Pricing a subscription app1

Interviews

How to Turn Gamification Into a Retention Powerhouse — Anton Derlyatka, Sweatcoin · Sub Club by RevenueCat · 2025-03-05
The Subscription App Industry Rebound — Eric Crowley, GP Bullhound · Sub Club by RevenueCat · 2024-10-02
VC Funding vs. Bootstrapping for Subscription Apps — Martín Siniawski, Podcast App · Sub Club by RevenueCat · 2023-10-04