It was recently reported that Spotify, the new music streaming service released in the United States this week, are acquiring new paid users by counter-intuitively limiting its membership base. Since its launch in the U.S. market, Spotify members have only been able to sign up through personal invitations, which has driven up hype about the website and created a sense of exclusivity on its membership.
Simple economics tell us that with limited supply and an increasing demand, prices increase. Spotify ingeniusly amalgamates the idea of scarcity and premium membership to acquire paid subscribers. By signing up for the paid version of the service, Spotify allows those seeking a membership to jump the queue. For $4.99 per month, the website provides unlimited, ad-free service on its website and for $9.99 per month, users can run its premium, mobile service. Launch parterships with Klout, Chevrolet, Coca-cola have also been made to enter users into contests to gain free invites to the website. Other social tools used to generate more interest in the service include posting service-related questions such as “What will be the first song you play on Spotify, and why? on various social media platforms such as Facebook, Mashable, and other Technology blogs. Invites are then sent to the readers with the most inspired responses. Again, user acquisition, brand and product marketing, and subscriber acquisition - three birds with one stone.
Such instances of hybrid online marketing hint that as as various business models surface online, there is much room to innovate in terms of user and partner acquisition.
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