Report: Spotify to discontinue free streaming tier?

Spotify may be planning to effectively eliminate its free, ad-supported streaming option, according to a new report by Digital Music News. The change would see the popular streaming music service limit free ad-supported access to a three month “trial” period, rather than the current open-ended and unlimited plan that many users currently enjoy. Spotify is said to be resisting this change, and has been trying to make the case that its “freemium-to-premium” migration path is working to effectively create new paying subscribers, however the service is under pressure from Universal Music Group and Sony Music Entertainment, who remain generally unconvinced and have reportedly disliked unpaid streaming options from the very beginning. While no mention is made of Apple’s attempts to sway the music industry to kill off licenses for free streaming for Spotify and YouTube, it seems likely that Apple’s new paid-only Apple Music service could factor into the labels’ decision-making process.

The three-month “proposal” would allow some artists and labels to extend availability of their content past three months through “emerging” or “up-and-coming” playlists, as well as continuing to allow for a non-interactive radio-style streaming feature. Both of these are similar to ideas likely to be included in Apple Music as well, further suggesting that the labels’ negotiations with Apple are having a backlash effect on existing services. It is not clear, however, whether specific artists would be able to limit free access entirely — an issue that has previously caused major artists such as Adele and Taylor Swift to leave services such as Spotify entirely. Further, not all labels are entirely on board with the new proposal, with some, such as Warner Music Group, suggesting that free streaming services are valuable at providing an alternative to outright piracy while still providing a small trickle of revenue.

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