The report clearly identifies a surge in subscriptions after Spotify introduced restrictions on its free service at the start of May, including a 10-hour monthly listening limit and a five-play cap on individual tracks. The changes came at the behest of some of Spotify’s major-label shareholders, who wanted to see an uptick in the company’s conversion rate of free to paid users.
They certainly got that. Music Ally can reveal that between March and June this year, Spotify lost 1.6 million free users, but gained 644,000 520,000 paying subscribers.
Here’s how that breaks down: In March, the company had 4.73 million free users and 1.02 million paying subscribers, with a total active user base of 5.75 million, of whom 17.8% were paying. Then the restrictions were announced in mid-April and implemented on 1 May. By June, the leaked report reveals that Spotify had only 3.13 million free users, but 1.54 million paying subscribers: 32.9% of its 4.67 million active users."