Rhapsody's Irwin says Pandora's, Spotify's "freemium" approach won't work

Posted by

Issue Date: 
Jan 16 2013 - 12:25pm

From Issue:

Rhapsody Intl. president Jon Irwin told Inc. magazine he doesn't think Pandora's and Spotify's "freemium" model  (that's when a basic version of a service is available free, but a subscription is charged for the full-feature version) is the way to go.

Inc. reports Irwin believes Spotify's (and Pandora's) strategy is to "build a big name and a big user base by giving away the store, then do an IPO and leave the shareholders to figure out if the service can make money." He says his company's strategy is in building partnerships with automakers, mobile providers, and consumer electronics manufacturers (which, of course, Spotify and Pandora have done with wider success). Rhapsody did, in fact, launch its app for the Roku set-top device this week (more here).

Spotify has 5 million paying subscribers, plus 15 million more who use the service free. Pandora says in December it had 67.1 million "active listeners" (the vast majority of whom listen free). Rhapsody, which doesn't offer free usage, has 1 million paying customers.

Irwin reportedly revealed to GigaOm his company's plans to expand into 16 more European countries (see RAIN here) in the coming months (Rhapsody is available in the UK and Germany under the Napster brand name).

Read more from Inc. here.


nice post!!

Thank you very much for sharing interesting articles here.keep posting like this with many more attractive article.

If there so no popularity

If there so no popularity for the product then the freemium approach won’t work. But pandora has so many viewers and I think its freemium approach may become successful. All the best for the new venture. Hoping for the best.Live in home care


I have read this speech of Irwin and I think its true. In an article of cheap essays I had read similar things and discussions. Well, I hope any decision made is quite healthy for everyone.

hotstar for android

The love of my life is Bollywood, and there's no better app to use for it than Hotstar. It's a little rough around the edges, but there's just no better app that streams those movies and soap operas legally
hotstar for laptop

payday loans

I seriously regards for ones invaluable facts about this unique amazing topic area not to mention expect further amazing items. Thanks a lot very much for the purpose of loving this unique loveliness piece of writing with the help of us. I'm sure appreciating it again substantially. Expecting a second amazing piece of writing. Follow this payday loans Peace of mind in the contributor! Good luck.

love it! very interesting

love it! very interesting topics, I hope the incoming comments and suggestion are equally positive. Thanks for sharing information that is actually helpful Sea Horizon

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

More information about formatting options

By submitting this form, you accept the Mollom privacy policy.