Spotify Mulls a 'Paid Only' Option for New Music Releases

Advertisement
By Associated Press | Updated: 9 December 2015 11:58 IST
Music-streaming giant Spotify is toying with the idea of allowing musicians to reserve new releases for paying subscribers, although it balked at doing so for Coldplay's latest album, according to a person familiar with the matter.

Such a move might push some users of Spotify's free version to upgrade to a $10 (roughly Rs. 660)-a-month subscription. Artists and record labels have pressured Spotify to pay more for the music it streams.

A "paid-only" window might also increase album sales if it led more music fans to purchase music rather than wait months or years for it to become available via cumbersome free options involving ads or the use of computers instead of phones or tablets. It's also possible it could tempt more people to seek out pirated music.

The person familiar with the discussions wasn't authorized to speak publicly about the matter and spoke on condition of anonymity. Spotify's deliberations were reported earlier by The Wall Street Journal.

Advertisement

Spotify has argued its "freemium" model has been a highly effective tool for gaining new paying subscribers. The company is the global leader in music streaming, with 20 million paying customers and 75 million total active users.

But artists like Taylor Swift have said the free service devalues their work. Last year, after failing to win an exception to have her music only on Spotify's paid tier, she pulled all her music from the service, instead distributing it to paid-only streaming services such as Apple Music. Similarly, Adele withheld her latest album "25" from all streaming services, which may have helped it achieve 4.5 million album sales in its first two weeks in release.

Spotify spokesman Jonathan Prince said in a statement that "we explored a wide range of promotional options for the new Coldplay album and ultimately decided, together with management, that Coldplay and its fans would best be served with the full album on both free and premium this Friday."

Advertisement

The album was released for sale last week.

Spotify is "100 percent committed to our model because we believe that a free, ad-supported tier combined with a more robust premium tier is the best way to deliver music to fans," Prince said.

Advertisement

While it publicly has taken the line that its free and paid services must have the same music to attract new users, in negotiations, Spotify has expressed a willingness to test out different ways of releasing music, according to two people familiar with such talks.

However, with few new big releases coming up this year, it's unclear when Spotify might start those tests.

Advertisement

Spotify's free service is unusually generous, allowing users who are willing to tolerate a few ads to select an entire album for free playback on computers, or on mobile devices so long as the tracks are shuffled out of order. Other services like Internet radio giant Pandora randomize playback, making it impossible to listen to a single album all at once.

Spotify has already experimented in smaller ways with reserving music for paying customers. Earlier this year, the company didn't initially make the 10-minute track "The Globalist" from Muse's June release "Drones" freely available, one of the people said. That track is currently on both Spotify's free and paid tiers.

A stream from a paying subscriber earns artists and labels roughly 10 times what they'd receive from a non-paying user, one person said. Artists and labels are thus extremely interested in limiting streaming plays to paying subscribers. That option is less attractive for Spotify, which is still trying to use its free service as a hook to lure new users.

Streaming, while quite popular, still only appeals to a fraction of the listening public. Only about a third of survey respondents in more than a dozen countries had listened to a free music streaming service in the last six months, according to the 2015 Digital Music Report by the International Federation of the Phonographic Industry.

There's another danger in creating a "paid-only" window for some artists, at least from Spotify's perspective. If the tactic catches on, it might create a rush for the exits that makes the free service less attractive to new users.

 

Catch the latest from the Consumer Electronics Show on Gadgets 360, at our CES 2026 hub.

Advertisement

Related Stories

Popular Mobile Brands
  1. Here's When the Realme P4 Power 5G Will Launch in India
  2. JioHotstar Announces Monthly Subscription Plans Across All Tiers
  3. Vivo X200T With Zeiss Cameras to Launch in India on This Date
  4. iQOO 15R Will Be Launched in India Soon, Company Confirms
  5. OnePlus 16 May Launch With These Display, Battery and Camera Upgrades
  6. Amazon's New Echo Show 11 Debuts in India With These Features
  7. Samsung Galaxy A57 Spotted on Certification Site With These Key Features
  8. Infinix Note Edge Debuts With MediaTek Dimensity 7100 , 6,500mAh Battery
  9. Nearly All Indian Creators Believe AI Is Powering Their Growth: Adobe
  10. OpenAI Offer: ChatGPT Plus Is Now Free for One Month
  1. Xiaomi 18 Series to Offer Periscope Telephoto Lens, Wireless Charging Across All Models, Tipster Claims
  2. Bindiya Ke Bahubali Season 2 OTT Release Date: Know Everyting About Cast, Plot, and More
  3. Far Cry 3, Far Cry 3: Blood Dragon and Far Cry Primal Getting 60 FPS Patch on Current-Gen Consoles
  4. OpenAI Offer: ChatGPT Plus Is Now Free for One Month
  5. Mastiii 4 OTT Release Date Confirmed: When and Where to Watch Vivek-Aftab-Riteish’s Adult Comedy Online
  6. Bitcoin Tests Key Support as Crypto Market Stays in Consolidation Mode
  7. Tere Ishk Main OTT Release Date Confirmed: Know When and Where to Watch Dhanush Starrer Film Online
  8. Conflict OTT Release Date Revealed: Know When and Where to Watch it Online?
  9. Nearly All Indian Creators Believe Generative AI Is Powering Their Growth: Adobe Survey
  10. Vivo X200T India Launch Date Announced; Will Feature Dimensity 9400+ SoC, 50-Megapixel Zeiss Cameras
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.