Spotify Revamps Free Tier Of Service In Bid To Boost Advertising

Spotify, the mobile music streaming service, is launching a major revamp of its free ad-supported tier.

The biggest change: Users will now be able to listen to songs on demand, as often as they like, as long as those songs are among the 750 the company selects to appear in its playlists that day.

The company will have about 15 curated playlists each day. Regular playlists, which feature shuffled music rather than on-demand music, will continue to be offered, with both playlist options being ad-supported

Spotify will also add recommendations to user-created playlists, based on the songs included, as well as a low-data mode, which cuts data use by around 75%.

The company went public last month, and at the time said it planned to boost its free offerings in an effort to increase its advertising revenue as well as convert free users into paying subscribers of its premium tier, which does not have ads.



When it went public, the company outlined its near-term advertising strategy in a filing with the SEC.

“We will continue to invest in our advertising products in order to create more value for advertisers and our Ad-Supported Users by enhancing our ability to make advertising content more relevant for our Ad-Supported Users,” the company filing says.

“Offering advertisers additional ways to purchase advertising on a programmatic basis is one example of how we continue to expand our portfolio of advertising products. We also are focused on developing analytics and measurement tools to evaluate, demonstrate, and improve the effectiveness of advertising campaigns on our platform.”

Spotify currently has about 90 million users of its free tier, and 71 million paying subscribers.

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