A report from MIDiA Consulting suggests that 60-80 percent of ad-supported accounts on services like Spotify, Pandora, and Deezer are effectively inactive. These inactive listeners contribute little value to the music service. After all, if someone never logs on, they’ll never see ads.
The MIDIA report confirms something we’ve seen happen with many services: A small segment of hyper-engaged users is responsible for the majority of overall engagement and listening hours in any given month.
Interestingly, we’ve noticed that the characteristics of these high-value users vary from service to service. The traits that make one user “high value” to one service don’t necessarily apply to another.
As such, it’s really important for a music service to understand who those high-value listeners are for their service specifically, and, ideally, to target acquisition and engagement strategies directly to those listeners. It’s possible. In fact, it’s exactly what The Echo Nest has been working on.
via The Echo Nest Blog.