|

Spotify shaking up business model

By Chelsea Lewis ,

Popular music streaming platform Spotify is getting ready to unveil an ad-supported, free streaming service for mobile devices. The new service would not require users to pay for the streaming service that Spotify provides.

Until now, users could only access the free version of Spotify on their desktop or laptop computers. If users wanted to stream music on their mobile devices, they paid a monthly $10 fee, which delivered on-demand music from its 20-million song catalog on any device.

The Wall Street Journal reported that the music company has reached a deal with all three of the global music companies—Sony, Universal and Warner Music Group—to use their recordings on the new service.

The three major music labels have stake in Spotify and want to see an increase in the subscriber base.

According to NBC News, many journalists have been invited to an event on Dec. 11 by Spotify, but they have not been told what product is going to be announced. Speculation says it will likely be the free streaming model.

Spotify currently has 20 million active users worldwide and 6 million are paying subscribers.

image: Wikimedia Commons

 
 

Join Our Newsletter

Popular Threads