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Why Spotify wants to look like TikTok, with co-president Gustav Söderström
Decoder with Nilay Patel
Spotify is Optimized for Long-Term Retention Over Immediate Click-Through
Spotify optimizes for long-term retention by focusing on impression and how much users listen weeks later. This approach differs from the traditional method of clicking to stream. They found that the most clickable item in the moment does not necessarily create the most retention. Sometimes, they show recommendations with lower likelihood of click-through but longer listening. For example, instead of showing the top played songs, they might recommend a new show or series. Spotify's focus on long-term retention is driven by the fact that over 90% of their revenue comes from subscriptions.
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