Question · Q3 2025
Bhatia Levy asked about the impact of free tier enhancements on engagement and conversion to paid subscriptions, and the implications for margins and future monetization opportunities.
Answer
Alex Norström, Co-President and Chief Business Officer, explained that the process is working, with Spotify gaining market share. He outlined three keys to subscription growth: strong engagement (growing listening hours and active days), minimal churn after price adjustments, and good MEU replenishment. He noted that increased MEU and engagement historically lead to higher conversion and business growth, emphasizing to 'trust the funnel.'