Spotify – ‘The Model is Working’

19 May 2015

Spotify not dropping free service

I recently reported on the news that Spotify was thinking about dropping their free ad-supported tier, well, they’re not.

According to Music Business Worldwide, Spotify have told them that the rumours are ‘totally false’.

A report in Digital Music News last week claimed that streaming giant Spotify was planning to cut its free ad-funded streaming tier. The report mentioned that the free tier would be limited to a three month maximum subscription on ad-supported, before they were forced into premium or to leave the service all together.

Spotify has denied these rumors, saying that they are not killing off their free supported tier – ‘It’s totally false. The model is working.’

Where has all this come from? 

Well, Apple is reportedly pressuring record labels to get Spotify to drop their free music streaming tier in preparation for the release of their new streaming service. Digital Music News also claimed that record labels were unhappy with Spotify as they don’t think they’re doing a good enough job of getting people onto their premium/paid tiers.

Spotify is holding a press conference on Wedsnesday, where they are expected to announce their new video streaming service.