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Old 11th September 2012
Lives for gear
I think it's a pretty simple marketing and pricing issue. My wife might want to listen to something for an hour once or twice a week. It's not enough to justify getting her own $10 a month account. The thing is I would gladly pay $20 a month for Spotify, and if I could use it on multiple computers simultaneously like I can with Netflix, I would install it on her machine and she could use it if and when she wants. I wouldn't worry about whether she was getting her full month's worth because it would just be part of the package. But I wouldn't bother to buy her her own account now because inevitably she would say that she never uses it much and we should cancel it.

It's all about bundling. Look at cable. How many millions of people want to buy just HBO but they can't because they have to buy the whole package? People justify it to themselves because it seems like they're getting all of this extra stuff even if they never watch it.

And of course the same was true with sales. Nobody bought music per user. They shared or made copies among family members. The total household spending is what is important, particularly since parents are inevitably going to be the ones paying for a kid's spotify subscription.