“Spotify is considering more limited musical experience for free users”
Spotify would consider to free users restrictions. Possible new albums in the future not immediately available for users that do not pay for the service.
Tell anonymous sources to The Financial Times. Spotify itself would not elaborate on the rumors.
According to The Financial Times carries Spotify currently onderhandelingsgesprekken about contracts with record companies Universal, Sony and Warner. They are responsible for the largest part of the offer on Spotify.
To the companies to meet would be the service to consider free subscriptions to a minimum.
Artists would then be able to indicate that they have their new album is initially only available for paying users. Only after a certain time the album is free to listen to.
In exchange for this concession, where artists and record companies all longer ask, hoping Spotify less royalties to pay. The company pays 70 percent of its revenues to record labels.
The turnover of the service is growing in the last years considerably, but the loss increases with every increase in sales also because the company has more royalties have to give. Spotify wants to eventually go to the stock exchange and has more positive financial results are required.
The last time Spotify has more competition from among others, Apple’s Music. There, users can access the service short, free to try, but all users after the trial period pay.
The number of paying Spotify users is growing nevertheless harder than ever. Total pay 39 million people for the service. Another 61 million people use the service, however, free and get advertising between songs. That produces less revenue than the paying users.
The negotiations between Spotify and the record companies would still in the early stages and may even last until the end of the year.