Wednesday, 11 December 2013
Spotify just went free on Mobile. This is going to hurt.
Music streaming just got shot.
Spotify announced that its music streaming service will be free (yep, free) to mobile users. Now that's a real shot at Itunes Radio (which is free) as they prepare to launch fully. Other services will be really hit because you can't compete with free - only match it.
Spotify was previously 9.99 a month (spotify premium) but they did have a free version for desktop and laptop.
And they also announced to get more publicity, that they now had a whole lotta Led Zep online. For free. (Led Zep 4, cover above, is always thought to be their best moment btw).
The service will be supported by Advertising for revenue.
This will concern local radio stations with a music bias, who'll have difficulty in retaining online listeners too.
Of course, Spotify will try to upsell you to ad-free versions and indeed other services such as 'on-demand'. But this is a breakthrough in the fight for listeners however, it's also a sign of a race to the bottom for all subscription services.
What's happening is, people are able or prepared to pay less so they're moving. If Spotify's subscription model was a roaring success, they wouldn't be doing this, trust me.
And will advertising pay for the music copyright fees and run the business? Difficult to see, but it is a model working for Facebook and starting to work for Twitter.
One thing for sure though, it has killed the market.