My Role
Product concept, business case, financial calculations/justification, team recruitment, team management, creative ideation, strategy, and project management.
Deliverables
Product innovation, creative platform, and launch campaign.
Background
I, like millions of others, love Spotify. It is the leading music streaming service in the world and quite literally pioneered the modern playlist. I had an idea for a new product offering that Spotify could introduce in my first semester at the Brandcenter. This idea was a parasite in my mind and I used the summer of 2024 to develop the idea with the guidance of our Department Chair, Kevin Rothermel. This past year I recruited a stellar team that believes in the idea as much as I do to bring it to life for submission to Young Ones ADC.
Problem
87% of Spotify’s revenue comes from Premium subscriptions, but only 40% of users subscribe to this service (Statista, 2023).
Opportunity
Converting 1/3 of free ad-tier users to Premium would result in a 28.21% ($5.5B) increase in revenue for Spotify.
How do we get users to convert to Premium?
Consumer Fast Facts
75%
Of audio streamers stream music (Mintel, 2023).
71%
Of music listeners feel it is a passion (Mintel, 2023).
80%
Conversion rate among Spotify playlist users (Medium, 2025).
Insight
100% of music streamers are renting music.
And almost half of music listeners know it…
47%
Of music listeners also buy physical music (Mintel, 2023).
72%
Of non-digital music format revenue came from vinyls (RIAA, 2023).
17 Years
Of consecutive growth in vinyl sales (RIAA, 2024).
Spotify can incentivize converting to Premium by:
Providing ownership
*
Providing ownership *
Introducing…
A way for Premium users to turn their playlists into a 12” vinyl record.
The Numbers Behind Spotify Spun
$86M
Cost to implement
$135M
Yearly operating cost
2.25M
Yearly copies sold to break even
(0.8% of current monthly Premium Users)
$833M
Added Premium revenue with a 5% conversion rate
Spotify Spun gives Premium users the opportunity to pay to turn their playlist into a completely customized 12” vinyl record.
Users can customize the liner notes, track list, cover art, and everything in-between. Since not everyone goes to advertising school, we’ve also extended the Spotify for Artists community to now include visual artists. Visual artists can upload their own creations for less graphically-skilled users to select. This provides these artists with increased exposure through the Spotify platform and a royalty if there design is immortalized on a vinyl.
With the objective being conversion among existing Spotify users, we want to take advantage of the owned platform to raise awareness through affordable audio ads where our target already exists… Spotify.
Out-of-Home
We will expand our reach after initial communications have launched by placing OOH executions in cities hosting concert festivals. A large portion of activations are also wall murals commissioned by local artists to further expand and encourage the Spotify for Artists community.
The Highlights
Expanded Artist Community
Select visual artists can upload their fan art and designs to the template library, allowing users to choose them as cover and vinyl designs. This gives artists a new platform for increased visibility and access to royalties.
Reduced Barrier to Entry
The average custom 12” vinyl costs approximately $90 and requires significant effort and expertise to create. Spotify Spun streamlines the process, offering a seamless experience at a 33% lower price—roughly $60 per unit (with a 50% profit margin).
Increased Music Artist Revenue
Music artists are paid royalties for a song that is pressed onto vinyl, providing an additional revenue stream, and opportunities for promos and partnerships.
Free Trial Conversion
With the purchase of a custom vinyl, customers also get a free trial of Premium. Research indicates 54% of consumers keep free trials, with this number rising the longer the trial (PYMNTS, 2024).
Credits
Elio Conroy (AD)
Riley Lachance (CW)
Harper Lock (CBM)
Alicia Rydel (XD)
Bailey Wood (AD)
