In February 2021, Spotify introduced their service to South Korea. However, they only added a paid subscription option. Now, they’re adding a free ad-based service.
Spotify previously launched in South Korea back in 2021. However, at that time, they only released their paid subscription service. There was no option for ad-supported tiers, which many other countries have. Those who wanted to stream through Spotify, had to pay.
However, Spotify are now introducing a free tier. This will open their service up for so many more people who want to stream music without a cost. South Korea has been recorded as the seventh-largest record music market within the world.
With that being said, it’s surprising that Spotify waited this long to launch their service. Even more surprising that they only released the paid version. Apparently, the music streaming provider decided to launch this to benefit brands within South Korea.
Spotify spoke about the free tier, saying it “opens an exciting new avenue for advertisers and brands in South Korea looking to reach a predominantly young, highly engaged audience.” In Q2 of 2024 alone, Spotify’s global ad-supported revenue reached €456 million ($490.97).
This is up 12% YoY. By the second quarter of 2024, Spotify reached 393 million ad-supported MAUs (monthly active users). The figure had risen from the previous quarter by 5 million. With the addition of a free tier in another country, music artists might see higher revenue.
Most users start on a free Spotify account
Spotify have noticed that most subscribers start off on a free account. It makes sense to try before you buy and by not allowing users in a certain region to do this, you’re eliminating the option. Users are more likely to upgrade their account if they can test it out first.
The streaming store said, “around the world, most subscribers begin their Spotify journey with a free account”. Now, in South Korea, users can access, Individual, Duo or Basic. They’re priced at 10,900, 16,350 and 7,900 South Korea Won.
Users in the United States, Indonesia, the Philippines, Japan, Mexico, Brazil, Thailand, India, South Korea, and Taiwan are the top streamers of South Korean music. By adding a free option to Spotify, the platform is expanding global reach.
