A new deal inked with Universal Music Group may be one way for Spotify to solve its subscriber (or lack of paying subscriber) problems. The popular (but controversial) music streaming service will be offering new releases from some artists that will be available initially only for Premium subscribers for the first two weeks before those on the free tier will be able to listen to it. This release flexibility will allow for the service to actually encourage people to pay for the service rather than just continue using the free version.
Of course this will only be applying to Universal Music Group artists and albums, and the artists will also have the option whether or not to limit their album for the first two weeks to just the paying subscribers or to let everyone listen to it all at the same time. If most of the artists will opt for the former, then this can be an incentive that Spotify can offer to people who like listening to albums as soon as they drop, to sign up for the $9.99/month service.
While Spotify has been a powerhouse in the on-demand music streaming market, it is not a very popular kid on the block in the music industry. It has been accused of lowering compensation for artists and the recording companies. The labels have been pushing them to have Premium-exclusive release offers to get more people on the paying tier. This new deal with Universal may be a good first step in that direction.
No news yet as to when these new Premium offers will actually start, but for the sake of the business’ sustainability, it should be soon. Would this be enough incentive for you to subscribe to the ad-free premium tier?
SOURCE: Spotify
VIA: SlashGear
