Spotify maintains same offer in free and subscription version
The streaming service explains that paying Spotify customers and free users will continue to have access to the same music library. Just a few hours earlier, the Wall Street Journal had reported on plans to the contrary.
Spotify is sticking to its current procedure, in which all customers can access the same music, a spokesperson said on Wednesday. "We believe 100 percent in our freemium business model." The Wall Street Journal had reported late on Tuesday that Spotify wanted to break a previous taboo and allow some artists to make their albums available only to paying subscription customers. Users of the ad-financed free version would then have to do without this music. Spotify has held out the prospect of this as a test in talks with music managers, according to sources close to the matter. Founder and CEO Daniel Ek has always emphasized that such a two-tier system would annoy users and was therefore out of the question. A year ago, Spotify preferred to let the popular singer Taylor Swift go rather than violate the principle. Swift removed her music from Spotify, but it is still available on competing services without a free version.
Free version brings less money
In the free version, the functions are limited, for example you cannot access individual songs. Ad-financed services generate significantly less money for music companies and artists. In recent months, there have been repeated calls from the music industry to make the free versions of streaming services less attractive by imposing further restrictions. Providers warned that this could drive users back into the hands of internet pirates instead of paying for subscriptions. They also point to competition from the video platform YouTube, where the music companies themselves place videos that can be viewed for free. Spotify from Sweden is considered the market leader in the streaming business and, according to the latest figures from June, has over 75 million users, of which around 20 million are paying subscription customers. With streaming, the music is played directly from the network instead of being downloaded. (SDA)
