Subscription Decisions — Spotify, Figma and The New York Times
Spotify’s free tier gives users access to a lot, but it comes with noticeable friction. Mobile listeners hear ads, face limits on skipping tracks, and can only shuffle play on the go. Once listeners build playlists and settle into routines, those interruptions become bothersome enough that many eventually upgrade. By 2024, Spotify had hundreds of millions of users and a surprisingly high share of paying subscribers, showing how a bit of frustration can be an effective nudge toward conversion.
Figma takes a softer, more product-led approach. Anyone can sign up without entering a credit card and create a few design files or FigJam boards for free. Real-time collaboration also makes it easy for teammates to join without committing to anything right away, which fuels organic adoption inside companies. The limitations – like missing version history or shared libraries – only start to matter once teams grow more serious about their workflows. At that point, upgrade prompts feel less like roadblocks and more like natural next steps, which is why many organizations eventually pay for additional seats.
The New York Times pioneered the metered paywall, originally letting readers view a set number of free articles each month. Now it uses a dynamic version that adapts to each reader’s habits: highly engaged visitors hit the limit sooner, while casual readers get more flexibility. By the end of 2024, the Times had a massive digital subscriber base, including millions who subscribed only to non-news products like Games or Cooking. Bundled plans have also become more popular, raising the average revenue per subscriber. The ongoing challenge is balancing access – restricting just enough to push readers toward subscribing without frustrating them enough to leave.
