Unlimited ad skipping is one of the primary reasons Spotify Premium subscribers pay for the streaming service, but now the company is testing to roll out unlimited ad skipping for free users. AdAge reports that Spotify wants to see if giving all users the ability to screen unwanted promotions is sustainable for their business model.
Danielle Lee, global head of partner solutions at Spotify told AdAge, "Our hypothesis is if we can use this to fuel our streaming intelligence, and deliver a more personalized experience and a more engaging audience to our advertisers, it will improve the outcomes that we can deliver for brands." Lee compares the feature, called "Active Media," to Discover Weekly, which personalizes the experience for their listeners. "We want to inject that concept into the advertising experience."
The idea is for free users to skip ads at any point they want, and of course advertisers won't have to pay for these skipped ads. The huge risk here is that Spotify's ad revenue will be relying on their audience's willingness to listen and/or watch through ads that are tailored to their interests. And if all goes well in Australia — which Tech Crunch notes is an ideal testing space as it's a "large, well-known, global platform" and "a large enough test bed and small enough market" — the feature may just roll out globally.