July 8, 2011 at 3:31 pm

Leaked Spotify Presentation: 50 Million American Users in First Year

spotify america facebookOur respected colleague Peter Kafka over at AllThingDigital obtained a juicy document — maybe even juicier than this video of the Turntable.fm creators — detailing Spotify’s plan to woo 50 million United States users in a single year after its impending arrival on these shores.

As suspected, Facebook will play a big part in this. The most telling slide in the presentation reads as follows (with our comments below each item):

“Why will Spotify be a success in the U.S.?

“1. Unique: No other product exists like Spotify in the US. Nobody does free, on-demand, radio, MP3 retail, Facebook and iPod integration and subscription together.”

This is technically true, although many competitors have these parts individually. Oddly, Spotify doesn’t mention its biggest advantage: that it allows users to try it forever, for free, no credit card required. Could that be changing in the U.S. version?

“2. Users are the #1 priority. Ad platform is not bolted on either, it had ads at its core from the start. Spotify has a solid business model.”

Yes, the free version has ads, but when Spotify cranks them up, users complain.

“3. The US has the Rolls Royce version at launch. Europe never had the heritage and story or buzz pre-launch.”

We agree with the latter, but U.S. users will also have a free version that’s much more limited than the European one was initially.

“4. We have hundreds of thousands of email addresses waiting to get accounts.”

We don’t doubt it.

“5. Spotify Social is already integrated to help spread the word. 150 million Facebook users will start to see music on their feeds. One click and they can have Spotify.”

This sounds a bit ambitious, but it’s true. Even YouTube admitted that in the same way American Facebook users rely on YouTube to share music, their European counterparts use Spotify, which can already share to Facebook from with the app. And again, Spotify requires no credit card upfront, in its current form anyway, which should help in this regard.

“6. Huge PR story and anticipation. The US has been waiting for over two years for Spotify to arrive.”

True.

“7. U.S. user projections – 50,000,000 American Spotify users within the first year.”

This is a massive figure, comprising approximately one sixth of the U.S. population, including people without broadband, smartphones, and/or the sense of hearing. By comparison, Evolver.fm learned that U.S. veteran Pandora, which offers a different service, has about 30 million regular users. That said, social networks including Facebook are the key to all of this, and Spotify’s presentation makes it clear that, as with MOG, Facebook integration will be a big part of this strategy.

Are you sick of reading about Spotify without being able to try it? From the looks of things, you’ll only need to wait about another week.

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  • Anonymous

    Dontcha mess with the Neil, dudes!

  • Anonymous

    Dontcha mess with the Neil, dudes!

  • Jay

    50 million seems very high, but that is the number credited to Vevo after YouTube integration. If the free version is easy and Facebook integration is easy, that is a realistic number.