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Spotify pushing ad-supported free tier to mobile

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According to sources, Spotify is trying to convince the labels to extend its ad-supported free tier for mobile devices, offering “more of a taste” than the current 30 day trial. Restricting mobile to paying or pro subscribers limits both the total number of Spotify customers and their overall usage. But it’s a risky bet. Without access to mobile music as an incentive, will users continue to convert from ad-supported to paid subscriptions?

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According to sources, Spotify is trying to convince the labels to extend its ad-supported free tier for mobile devices, offering “more of a taste” than the current 30 day trial. Restricting mobile to paying or pro subscribers limits both the total number of Spotify customers and their overall usage. But it’s a risky bet. Without access to mobile music as an incentive, will users continue to convert from ad-supported to paid subscriptions? Or is it users’ inability to see the value of Spotify on mobile that makes them less likely to buy in?

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BROAD TRENDS ALL FAVOR SPOTIFY’S MODEL

Spotify is still in a good negotiating position. Apple remains the leader in online music distribution but overall, sales of music downloads have slowed to a trickle. Downloads just aren’t making up for the decline in CD sales. We keep hearing that Apple is going to launch a subscription radio service similar to Pandora, but music industry sources say Apple and the labels are still far apart on licensing. As for Google and the others, their music offerings have yet to ignite much interest.

The broad trends all favor subscription streaming on a wide range of devices, and Spotify is the only subscription service that has generated real scale. The labels are big fans of the subscription model, which gives them predictable income across their entire catalog. The major labels have a vested interest in making sure subscription-based music continues to grow and thrive.

There is a large catalog of Asian music on Spotify. Do you use it?

Are you using the free ad-supported version or do you subscribe?

Source: The Verge

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