Skipping Ads: Spotify's Australian Experiment

According to an article on TechCrunch, Spotify is running a test in Australia regarding advertisements:


SpotIfy will let listeners skip audio and video adverts at any time while the ad is playing. This is instead of having a preset time limit to listen to or watch the advert which can’t be skipped. They’ll be able to do this any time they want, as often as they want, and the new feature will also let them jump straight back into the music.

I used to be a fan of Spotify, but over time the frequent ad breaks made me enjoy it less and less, to the point where I barely use it now. (For everyone who says "get premium!' I am a poor college student with no money).

Spotify's experiment is exciting but at the same time a little puzzling, as Spotify makes its money off of advertisements, and in the new business strategy skipped ads won't generate any cash for Spotify. The idea is that the ads will slowly become tailored to the consumer, who will then (theoretically) listen to the ads instead of skipping them.

What does the community think about this strategy's chances of success? Spotify has already established itself as a music streaming titan and I believe this may strengthen their relationship with all their consumers.

 

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