Thursday, 13 August 2015

Spotify could introduce new limits on access to its free music

Spotify could introduce new limits on access to its free music

According to sources talking to Digital Music News Spotify is looking to curtail its free music model, possibly as early as the start of next year. Though it might be worth taking such claims with a significant dose of sodium...

Those sources reportedly expect Spotify to move towards a 'gated-access' model where Premium subscribers are able to get content which the free, ad-supported users wont get to hear.

These could be troubling times for the music-streaming giant, with only two months until a reported October 1 deadline for renegotiating its deals with the big music houses; Sony Music Entertainment, Warner Music Group and Universal Music Group.

None of those three industry giants have reportedly signed up as yet, which is leading to speculation there is pressure on Spotify to restrict its free music service.

The report says there are a number of different gated models being discussed, ranging from simple timed exclusives on key new albums - offering Premium members access ahead of the free users - to a situation where only a couple of songs from such albums are accessible for free with the full offering only ever being available to Premium subs.

Missing out

The driving force then is apparently to make "the free users to feel like they're missing something, not just forced to listen to ads," DMN quotes one source as saying. Spotify then is reportedly looking to convert more of the 50-odd million Spotify Free listeners to the Premium service.

Spotify itself though is refusing to dignify the report with a response, while CEO Daniel Ek was on record last month stating that free music could grow the industry by a factor of ten compared with its current size.

"If we build the revenue model around 'freemium'," Ek told The Guardian, "the music industry will be much larger than it's ever been before, more artists will be able to make a living by being artists and more people will listen in turn."

Ek equates Spotify Free with the radio industry, itself a historically free, ad-supported medium.

But with the amount of money the likes of Apple Music and Google have to back their own offerings it's an increasingly competitive arena to be operating in.










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