If you’re not a premium user of Spotify, you may soon be missing out on some big releases on the music-streaming service. It is being reported that Spotify limits album releases to its paid tier only.
Some reports claim that the company is negotiating a major shift in its service. In exchange for lowering the royalty charges that it pays to music companies, Spotify will block new album releases for free users. Given that premium subscriptions generate more revenue for the labels, the deal is reportedly aimed to push users of Sweden-based free service to finally subscribe.
It’s not the first attempt by the service towards making it subscribe. In 2015, Spotify has shoved iOS users to stop paying for its streaming via App Store. Currently, it is negotiating with the ‘big three’ record labels, namely Sony, Warner, and Universal. All of these three labels own a small share in Spotify. The startup is in talks with several leading record labels, helping the streaming service take a step closer to a much-rumored IPO.
Making the company more attractive to investors is reportedly the reason; Spotify limits album releases to premium users. Reports don’t specify which albums will be initially blocked for free users; however, it isn’t difficult to assume that major labels will put their most prominent albums behind a paywall.
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Spotify’s IPO ambitions underscore the severing competition for music-streaming consumers. If we consider the statistics of the last three years, customers have moved from digital downloads to memberships which charge a monthly fee for unlimited access to millions of songs.
In order to entice more and more subscribers, Spotify will restrict some album releases to paid users. At present, the company leads the market with 50 million paying subscribers across the globe, up from 30 million premium users a year ago, reports suggest.