Labels Reportedly Urging Spotify To Restrict Free Music Streaming

Music streaming services are here to stay, given the fact that they recently eclipsed CD sales in the U.S. for the first time ever, its not likely that music lovers will go back to CDs and not take advantage of the portability and flexibility that streaming services offer. Music labels have played ball but now it looks like they’re worried about how some services conduct their business. Spotify lets people stream music for free even if they don’t sign up for its premium subscription service and music labels are apparently not to happy with it.

A report from the Financial Times reveals that Universal Music Group, the largest music label out there, is using its current contract negotiations with Spotify to pressure the streaming service to place restrictions on its freemium model.

The label reportedly hopes that pinching free users will convert more of them into paying subscribers. That will put more money in Spotify’s pocket which means labels will get more money as well.

Recent reports about Apple’s upcoming music streaming service suggest that the company has been telling labels it can help them out with this problem. Apparently the new service won’t even have a freemium model, customers will have to pay to play after their free trial ends.

Another report by the Rolling Stone says that “most” labels are now pushing for stricter restrictions on free music streaming, major labels like Sony Music and Warner music have been named alongside Universal.

Adnan Farooqui
Categories: General
Tags: Spotify