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Published: Fri, June 23, 2017
Tech | By Dwayne Harmon

Spotify testing Sponsored Songs on free tier

Spotify testing Sponsored Songs on free tier

Spotify, however, doesn't count as a radio station. The practice will only affect those who use the streaming platform's unpaid tier. The thumbnail preview shared to the group will show the playlist's name and offer a button below to add songs. Unfortunately for free users, the opt-out option for Spotify's potential rollout of Sponsored Songs will only be available for premium subscribers. As TechCrunch reports, Spotify has lately been testing a new "sponsored songs" ad unit.

The trial now consists of relevant promoted songs being added to the playlists of non-paying Spotify users as sponsored content. These can be targeted to appear to users with matching listening tastes so they fit alongside their other music.

It is not immediately clear how Spotify will charge the labels-whether it will be based on impressions, actions, listens, etc. Paid subscribers won't be subjected to sponsored songs, but some of those who use Spotify's free version will be. However, this is an important hint that Spotify is looking for some monetary benefits as a result of this feature.

As BBC explains, the music platform boasts a user base of 140 million - about 50 million of whom pay to use the ad-free service - and brought in €2.9 billion (about $4.27 billion) a year ago, but is yet to turn a profit. Although they recently announced 140 million active users, the company posted an operating loss of $389 million in 2016.

The Future of Music Coalition is again sounding the alarm on payola, pointing back to a column it first published in 2015.

For some users, the company has also auto-enabled the Sponsored Songs feature. Also, labels and artists can also obtain great benefits.

Currently, Spotify's existing adverts appear as banners on the homepage of the mobile app and website.

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