Spotify is prepping for launch of a free ad-supported alternative to its paid music streaming service, and reports claim that the service could launch this week itself.
Users wanting to stream music to their mobile devices are required to shell out £9.99 per month, but the new service aims to replicate its desktop offering that enables users to listen to music for free – a limited plays with regular advert interruptions.
The Wall Street Journal reports that the new service will be more or less like a custom radio service that would allow users to play a limited number of songs as per their choice. The report claims that the Sweden-based company has spent a considerable amount of time last year to negotiate with major music labels including Sony, Universal and Warner over the rates it will be required to pay for songs played through its free service.
According to some reports, Spotify is under pressure from its investors to increase subscriber base of its premium service and the free ad-supported service may just be one of the ways to not only increase customer base, but also lure them to turn to paying ones. The move could also have been sparked to stay competitive in the streaming music market where likes of Apple and Google have jumped in.
Spotify has sent out invites for an event to be held on December 11 in New York, but very little is known about the agenda.
