Freemium Consumer (2008) = Spotify… Free Paid Share Music / Playlists With Others… …Premium User Experience Paid Users + Share of Total 100MM 50% ) ne Li ar) Red B ( ue l l ota [Spotify] worked because we recognized… B T ( 50MM 25% fans wanted all the world's music for free, immediately. of ers Our users share with their friends the Us er % d Us joy of exploring music through Spotify, ai which creates incredible word-of-mouth for our business. P d ai P …Our free product drives premium subscription growth, that leads to better personalization & drives use among younger demographics with greater potential lifetime value. 0 0% Daniel Ek – Spotify, Founder / CEO, 3/18 2015 2016 2017 2018 Source: Spotify Analyst Day Presentation (3/18). Spotify. Internet Trends 110 2019