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Tuesday, March 13th 2018, 2:24am


Yeah, you always have to remember what currency you're talking about.

Lewis: Before we get to currency, why don't we talk a little bit about some of the core business metrics? I think MAUs is probably one of the easiest Nike Air Max Tavas Womens places to start.

Niu: Sure. Right now, they have 159 million monthly active users, of which 71 million are Premium paid subscribers subscribing to any of the plans you just mentioned above.

Lewis: And Nike Air Huarache Pánské that rate is actually higher than it was a couple years ago. You go back to 2015, I think 30% were Premium, and now we're seeing about 44%. Some of that, I think, is the popularity of the Premium offering. Some of that is how they calculate that Premium number. That's something that we're actually going to hit Nike Air Max Classic BW Dam on in a minute or two.

Something that's incredible to me, Evan, looking at the breakouts of their different user types is, up until 2017, Spotify was actually losing money on their ad-supported customers.

Niu: That's pretty standard, considering the industry that we're talking about. Music streaming is notoriously an Nike Air Max Thea Dámské industry that has really tough economics. And Spotify, because they've had these direct licenses with the record labels for many years, those costs are higher than what a company like Pandora faces, because Adidas ZX 850 Donne Pandora uses statutory licenses as a way to minimize their costs. Since Spotify has direct licenses, which they've also recently negotiated, which we'll talk about later on, the costs are just huge. Then, when you're trying to monetize a service with ads, it's not a good experience for the users, because listening Nike Air Presto Donne to ads constantly is really kind of obtrusive. At the same time, you're not really making a lot of money, either. So, it's not really a great solution for anyone.

Lewis: There have been times when I've been at someone's house and we've been hanging out, cooking dinner or something like that, and we've been listening Nike Air Max 95 Dam to Spotify on their account, and you immediately know when it's a free account Adidas ZX 850 Mujer when you're listening to two or three songs and then all of the sudden you're blasted with an ad for something that has Adidas Ultra Boost Mujer nothing to do with the music you were just listening to.

Niu: Like tires. [laughs] It's just random.

Lewis: [laughs] Yeah. It's certainly a different user experience. And when you think about that price point of $10 a month, it's a pretty compelling offering, given how big their library is.

One of the other metrics, Nike Air Max 95 Dámské and this one might have people scratching their head a little bit with Spotify, is Premium ARPU. This is something that's actually trending down for them. It helps to look at the mechanics of how these numbers are calculated, though. In 2015, we saw just under €7 a month for ARPU. 2017, we're at just over €5 per month. And I think this calculation, as well as some of the user growth that we talked about earlier, are classic examples of why it's good to read the prospectus and read company conference calls, because Adidas ZX 700 Mujer you get the explanation of how these numbers are calculated and what is going on with these metrics.

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