Spotify reportedly aiming at free access for mobile users

Feb 20, 2013
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Spotify, the ever-popular music streaming service, is apparently in talks with major music labels to negotiate reductions in royalty fees in order to offer free access to the service's mobile offerings. Currently, users have to pay $9.99 per month in order to access Spotify on their smartphones or tablets.

The Verge reports that "several music industry sources" are saying that Spotify is already in negotiations with Warner Music about lowering fees and changing rights to its music, and Spotify is said to begin similar negotiations with Sony and Universal soon. If such negotiations are successful, Spotify would see a growth in profits, as well as the ability to give more users access to free content.

Spotify's free offering only gives users access to the desktop app with advertisements, but paying the monthly $9.99 fee will get rid of ads and allow users to access their Spotify library on their mobile devices. Even though, Spotify boasts 20 million users, 5 million of which are paying subscribers, the company is currently breaking even financially.

While free access to Spotify's mobile offerings would certainly be fantastic, it's hard to say if the negotiations with the music labels will go well. Streaming music services have a tense relationship with music labels and even individual artists. Several major artists, including Coldplay and Adele, have refused to allow their music to be streamed by Spotify because of extremely low royalty fees and rights to the music.

[via The Verge]


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