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In 2015, Spotify faced challenges in its pricing strategy due to high licensing costs, competition from Apple Music, and a low conversion rate from freemium to premium users. The company operated on a freemium model, but with 70% of its revenue directed towards royalties, profitability remained a significant issue. To improve Average Revenue Per User (ARPU) and achieve financial sustainability, Spotify could explore several adaptive pricing strategies, including tiered pricing, regional pricing, and usage-based models. Additionally, employing psychological pricing techniques, offering bundled services, and providing discounts could help increase user conversions. By implementing these strategies, Spotify can optimize its revenue while maintaining a competitive edge in the ever-evolving music streaming market.