Spotify Brings Back Messaging Feature for Subscribers

Spotify is launching a messaging feature for its free and premium subscribers.

“Whether you’re sharing a new audiobook with a friend for book club, bonding over your new favorite song, or swapping history podcasts with Dad, the right recommendation can spark a great conversation with those closest to you,” the streaming audio service said in its announcement Tuesday (Aug. 26). “Messages are a fast and convenient way to share and chat about what you’re listening to with the people you care about.”

According to the announcement, the messaging feature—open to users 16 and above—are one-on-one conversations that let subscribers share Spotify content and react with text and emojis. Users have the option to accept or reject messages from friends or family.

A report by Reuters noted that Spotify had once offered a similar messaging feature, but discontinued it in 2017 due to low engagement. Now, the platform is counting on a substantial uptick in subscribers in recent years to rejuvenate the feature.

That report also pointed out that Spotify has been focused on boosting margins through price increases while balancing user growth amid rising competition from the likes of Apple Music, Amazon Music and YouTube.

A separate report from earlier this week by the Financial Times (FT) said the company was planning further price increases as it invests in new features and aims for 1 billion users.

Alex Norström, co-president and chief business officer of Spotify, told the FT that the increases come after several years of the company keeping prices flat, and that the higher prices would come in tandem with new services and features.

“Price increases and price adjustments and so on, that’s part of our business toolbox and we’ll do it when it makes sense,” Norström said.

Earlier this year, Norström was asked during an earnings call if Spotify would ever consider rolling out a low-cost subscription plan.

“I wish it was that easy that we could sort of look at other industries and how they’ve introduced lower price subscription plans and including ads in there, but it’s more complicated than that. Industries are sort of different,” said Alex Norström, the company’s chief business officer.

Introducing something at a lower price, he argued, wouldn’t “drive much incrementality” to Spotify’s overall model.

“But never say never. There may be a time when this makes sense,” Norström added.

As PYMNTS wrote earlier this year, subscription models such as Spotify’s allow for personalized offerings while maximizing potential revenue.

In fact, research by PYMNTS Intelligence has shown that nearly half of consumers are “deal chasers” and will switch out services to get a better deal, while other consumers can be pulled away from being loyal customers with a better price.