Saturday, April 16, 2011

Pressure from big labels seen driving Spotify free music cutbacks

Spotify has slashed the benefits of its free music service just ahead of its highly anticipated US launch. The company announced Thursday that it would halve the allowable hours of free music from 20 to only 10 hours per month and will limit free users to five plays per track. Spotify did not provide an explanation for the change, but some believe it's due to pressure from the music labels to beef up Spotify's paid subscriber base.

The changes to Spotify's system will go into effect at different times, depending on when customers signed up. New users who sign up today will be able to get completely unlimited service for six months, after which time they'll be limited to 10 hours per month and five plays per track. (This also applies to users who signed up between November of last year and now.) For users who signed up on or before November 1, 2010, the changes will go into effect in a couple weeks on May 1, 2011.

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Source: http://feeds.arstechnica.com/~r/arstechnica/index/~3/msrmjSHVSjY/pressure-from-big-labels-seen-driving-spotify-free-music-cutbacks.ars

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