Spotify, one of the world’s leading music-streaming platforms, has taken steps to test a new approach to lyrics accessibility, potentially impacting free-tier users.
Spotify restricts lyrics for free-tier users – Here’s why
Spotify has initiated a test in which it restricts access to lyrics for some of its non-paying users. These select free-tier listeners are met with a message that states:
“Enjoy lyrics on Spotify Premium.”
As reported by Tech Crunch, Spotify emphasised that this change is currently in the testing phase and is being rolled out to a limited number of users in specific markets.
While the company has not disclosed the exact reasons for conducting this test, it is undoubtedly exploring avenues to further monetise its platform.
Despite its impressive overall user growth, Spotify’s paid subscriber base is not growing at the same rate as its free listeners.
The company has seen significant growth in its ad-supported tier, with a 34% increase in monthly users over the past year, totalling 343 million.
However, the growth of its paying monthly listeners, now at 220 million, has been slower, with a 17% increase.
Although Spotify remains highly popular and competitive in the music-streaming industry, it faces challenges in converting free users into paying subscribers.
The company is not yet profitable, while its main competitor, Apple, holds the title of the world’s most valuable company.
Spotify’s revenue is primarily driven by paid subscribers, with over €2.7 billion reported in premium revenue for Q2 2023, compared to just €404 million in ad-supported revenue during the same period.
The future of this test, whether it becomes a permanent feature, remains uncertain.
Spotify seems to be gauging the impact of this change by keeping it confined to a limited scope. Nonetheless, it is important to note that lyrics can still be readily found online through various sources.