Is Spotify Vulnerable?

Rival streamer Qobuz grew more than 200% in one year—while Spotify struggles to attract new users

Which web platforms do I trust?

Choosing between them is like picking which Mafia wiseguy gets my protection money. Most platforms stopped serving users long ago—and have now switched to audience capture strategies. That’s the modern equivalent of the company store¹, where prices are set based on pain thresholds, not market value.

In an audience capture business, you make it hard for users to leave—and then see how much you can squeeze out of them. Spotify serves as a case study for this approach.

The company kept prices low until it had captured a large user base, but now has switched to harvesting—routinely boosting its price, each time just a little bit more. They recently announced the third price increase in less than three years. Subscribers are the proverbial frog in the pot of boiling water—if the temperature rises slowly enough, they get cooked without ever realizing it.²

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That’s the state of play for Spotify users right now. They still think they are in a hot tub at the resort, but they’re actually on the dinner menu at Regeringsgatan 19 in central Stockholm.³

Almost all of the news from Spotify is unpleasant these days—but also quite revealing. We’re now in a volatile situation that could result in a completely different streaming environment five years from now.