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Spotify undercuts itself

Needs more punters to pay artists
Tue May 18 2010, 13:58

ONLINE MUSIC SERVICE Spotify has cut its subscription fee in half in the hope of luring punters.

When it was launched, Spotify was hailed as the music industry's saviour, as if it needed one. Since all four of the major record labels took control of Spotify, the one size fits all £10 per month subscription model has deterred users from signing up. To fill in the gap between its paid and free service, the firm has introduced a £5 a month "Unlimited" service.

The new tariff gives users unlimited access to the firm's seven million song library without adverts. However in a bid to avoid cannibalising its original £10 per month service, Spotify will not allow access from mobile devices or the ability to listen to music when offline in its Unlimited service. So it's a somewhat limited, er, Unlimited service, really.

To further diminish the quality of its half price service, Spotify doesn't offer what it claims is "enhanced quality sound", that is, a stream with a bitrate of 320kbps. At press time, Spotify had not responded to our request to reveal the bitrate it will offer in its Unlimited service.

In recent months, Spotify has come under criticism for shafting artists, paying them next to nothing despite hours of airplay. The firm retorted by saying that as its service increases in popularity, the richer artists will become.

This latest price cut could, if Spotify is to be believed, help artists as well as itself. µ

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Comments
reality cheque please

Every month I process tens of thousands of Spotify transactions and every month I calculate that for every thousand transactions you're lucky to earn a quid. I want to earn more than a quid per 1k transactions, in fact I want to earn more than a quid for dealing with 1k transactions and doing the fucking sums.

posted by : bassman, 17 April 2011 Complain about this comment
What about the 'open' service

They have also added an 'Open' service which is the same as the free but is restricted to 20 hours/month listening but you DONT need an invite. I think they are hoping this will get people on board but we all go over 20 hours/month and so they will either have to buy the unlimited/premium service.

posted by : Barry, 18 May 2010 Complain about this comment
Spotify should expand its audience

Add some countries and some customers, Spotify. We were told last year that Spotify would be available in North America (or the US at least)in early 2010. We're still waiting. And starting not to care.

posted by : Binky, 18 May 2010 Complain about this comment
boh

Excuse me you might want to correct this

"Needs more punters to pay artists"
to
"Needs more punters to pay the greedy MAFIAA"

posted by : mrwho, 18 May 2010 Complain about this comment
aboutus
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