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Tech: Rumour: Spotify to cut "freemium" service
ATRL Senior Member
Member Since: 8/1/2012
Posts: 27,547
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Rumour: Spotify to cut "freemium" service
Quote:
Spotify may soon be limiting its free, ad-supported access to just three months, instead of its open-ended, unlimited freemium access plan currently, according to multiple sources to Digital Music News.
The three-month ‘proposal,’ advanced most principally by major labels Universal Music Group and Sony Music Entertainment, would allow current, free-access, ad-supported (or ‘freemium’) subscribers to continue their plans for 6 months, while new users would be limited to three months only.
“It’s weaning them off free, is one way to think about it, while making [Spotify] more in line with [other streaming services],” one source with knowledge of the discussions shared.
Spotify is apparently disinterested in curtailing freemium at all, and has advanced the idea that its freemium-to-premium migration path is working.
But at “just” 15 million paying subscribers, major label decision-makers remain less-than-swayed, and Spotify’s power in the negotiations has its limitations. Indeed, without cooperative licensing from the major labels, of which there are three, Spotify would essentially become crippled. That would explain why Spotify has offered massive cash advances, substantial equity stakes (up to 15 percent across the majors), or both to secure major label licensing for its service.
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Member Since: 1/2/2014
Posts: 5,461
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Okay, but your service isn't supports in some countries. Are they really care about new subscribers?
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Member Since: 12/14/2006
Posts: 6,181
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they wouldn't dare. Without the freemium users they'd be nothing
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Member Since: 8/19/2013
Posts: 17,938
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Member Since: 9/9/2012
Posts: 59,872
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Quote:
Originally posted by xclusivestylesz
they wouldn't dare. Without the freemium users they'd be nothing
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90% of their revenue comes from Premium subscribers so how exactly would they be nothing without free users
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I've already said this would happen so it's not surprising if it does. 
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Member Since: 8/17/2013
Posts: 20,654
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YASSS 
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Member Since: 8/17/2013
Posts: 15,907
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dddddddddddddddd
TIDAL ha impact
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Member Since: 8/28/2012
Posts: 34,863
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It can remain a rumour.
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ATRL Contributor
Member Since: 8/18/2013
Posts: 4,821
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These labels just don't get it, do they? Freemium is the answer to illegal downloading. Sure they're not getting paid the full amount, but before, they were getting nothing when people would just illegally download the material. Now at least they're getting something via ad supported revenue. I hope it slaps them in the face when they realize people will go straight back to their downloading ways when this gets eliminated.
I know I for one will be migrating to YouTube for my non-Gaga music needs (as I actually own all her material obviously) if freemium services get cut on Spotify.
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Member Since: 8/31/2013
Posts: 20,892
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Quote:
Originally posted by TheNight
These labels just don't get it, do they? Freemium is the answer to illegal downloading. Sure they're not getting paid the full amount, but before, they were getting nothing when people would just illegally download the material. Now at least they're getting something via ad supported revenue. I hope it slaps them in the face when they realize people will go straight back to their downloading ways when this gets eliminated.
I know I for one will be migrating to YouTube for my non-Gaga music needs (as I actually own all her material obviously) if freemium services get cut on Spotify.
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This
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Member Since: 12/14/2006
Posts: 6,181
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Quote:
Originally posted by iHype.
90% of their revenue comes from Premium subscribers so how exactly would they be nothing without free users
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I've already said this would happen so it's not surprising if it does. |
Oh!? I had no clue. Let me start putting aside $10 every month then. 
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Member Since: 1/1/2014
Posts: 1,153
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Then I'll just create more accounts.
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Member Since: 9/12/2012
Posts: 26,389
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All aboard the ship y'all, we're headed out to sea!
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Member Since: 5/28/2012
Posts: 11,243
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Wow, TIDAL really must have them shook, if they're willing to remove the thing everyone was dragging TIDAL for not having
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ATRL Senior Member
Member Since: 8/1/2012
Posts: 27,547
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Quote:
Originally posted by bey0nce
Wow, TIDAL really must have them shook, if they're willing to remove the thing everyone was dragging TIDAL for not having
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You failed to read the article, this has nothing to do with Tidal, it's the record labels who are forcing them to do this
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Member Since: 4/4/2014
Posts: 10,514
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The reason that labels are turning from freemium is that they make so little money for everyone involved that it's probably more feasible to remove it and hope a small percentage upgrade than continue the freemium model.
Yes, freemium is better than pirating, but freemium barely gives a pittance. If 90% of the freemium users leave and 10% upgrade, Spotify will probably come out ahead.
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Member Since: 2/2/2014
Posts: 13,171
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Member Since: 4/4/2014
Posts: 10,514
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This could still go miserably wrong, but Spotify has already developed a sizeable base. That gives it a better shot than Tidal had.
Spotify also doesn't have many image and PR issues.
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ATRL Contributor
Member Since: 2/6/2014
Posts: 32,692
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Tidal ha POWER
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Member Since: 8/31/2013
Posts: 9,758
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Screaming at certain bases running in to praise tidal without reading the op
Quote:
Originally posted by TheNight
These labels just don't get it, do they? Freemium is the answer to illegal downloading. Sure they're not getting paid the full amount, but before, they were getting nothing when people would just illegally download the material. Now at least they're getting something via ad supported revenue. I hope it slaps them in the face when they realize people will go straight back to their downloading ways when this gets eliminated.
I know I for one will be migrating to YouTube for my non-Gaga music needs (as I actually own all her material obviously) if freemium services get cut on Spotify.
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The t
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