You may have read somewhere that Spotify is planning to end the free plan, yielding to pressure from record labels. Instead of releasing the unlimited streaming with advertisements, the service would offer only a tasting of three months. But you need not worry: the rumor is totally false, according to the company.
About the rumor a Spotify spokesman issued a clear statement to The Next Web: “It’s totally false. The model is working, “in reference to the plan supported by advertisers. The news came from the Digital Music News, a publication focused on industry music that has no history of true rumors.
This does not mean, of course, that Spotify is not being pressed. According to the Financial Times, Universal Music came to negotiate with Spotify a way to deliver the album in 1989, Taylor Swift, only to paying users, a request that was denied by the streaming service. The rest of the story you know: the singer pulled out all the Spotify music.
Recently, the free plan of Spotify was involved in another controversy: according to The Verge, the Apple would be pressing the major labels not to renew the contract with the service. To remove the music from Spotify free plan, Apple would open space to launch its own streaming service based on Beats Music, bought by the company in 2014.
While paying subscribers are minority in Spotify, they are responsible for the largest share of revenue from record labels, since the streaming service pay less royalties for running when the music is played by a Spotify Free user. Among the 60 million Spotify users around the world, only 15 million are paying.
In other words, the rumor is false. But the hypothesis of free Spotify plan ceases to exist is far from being discarded.