Spotify is positioning its free service as a competitor to terrestrial radio worldwide, not to mention more direct competitors such as Apple Music, and that Spotify pays more to artists and rights holders than terrestrial commercial radio does.
Naturally, Premium is ad-free but it also allows for on-demand, offline or online playback of over 40 million songs without restricting users to tracks present within their discovery playlists. Spotify is improving that free offering to help lure in more users, and hopes it will eventually turn into paid subscribers.
The company will have around 15 curated playlists each day. "This is something that has never been done before for free".
Spotify now has about 90 million users of its free tier, and 70 million paying subscribers. What are your thoughts on Spotify's new mobile app? This has been reduced to four buttons: Home, Search, Your Library, and Premium.
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While it could hardly be called confusing, Spotify deemed it too cluttered and has done a little consolidating. Premium users will also see this redesign.
According to a report in Variety, enhancements to the streaming service's mobile app is among these changes. Spotify's in-house playlists, such as Rap Caviar and Viva Latino, are important drivers of exposure (and by extension, revenue) for record labels and artists. Hmm, wonder where that idea came from (*cough*Apple Music*cough*). Users will be able to play any song they want from any of those playlists and as many times as they want without having to shuffle.
It also hinted it was working on a voice product that would be launched at a later date. We both create demand for music streaming and we monetise it. This means you can pick the song you want to start with, without relying on the musical Russian Roulette game of hitting shuffle as often.
Spotify now has a data saver mode. It'll be specific to each user; if a heavier Spotify user will have more cached. "It's where 60 percent of paid users start out", said Söderström at an event in NY. As any Spotify subscriber knows, one of the most frustrating parts of the free-tier membership is the limited skip count. The company expects its overall audience could top 200 million monthly users by the end of this year.
This is a developing story; check back for updates.