Spotify To Begin Limiting Free Listening
April 15, 2011 at 5:50 AM (PT)
Music cloud subscription service SPOTIFY AB, which reached the milestone of one million paying subscribers across EUROPE in MARCH (NET NEWS 3/8), but has yet to launch in the U.S., is now adding more limits to listening time. YAHOO! NEWS reports beginning "MAY 1st, new free users will have unlimited listening for the first six months. But after that, they will be limited to 10 hours of music per month."
Industry insiders speculate the move could have a negative affect on a U.S. rollout.
"This was a predictable move," eMUSIC CEO ADAM KLEIN told THE L.A. TIMES. "Their previous offer, while great for consumers, was not a sustainable business model."
SPOTIFY has support in the U.S. from EMI and SONY, but has yet to complete deals with UNIVERSAL MUSIC GROUP and WARNER MUSIC GROUP.