People familiar with the matter said Spotify is working on an improved free music service that will be easier to use on mobile devices. The news comes just one week after the U.S. company went public.
Sources asked not to be identified as the plans are still secret. The streaming company could make an official announcement in the following weeks.
It is not surprising that the company tries to improve user experience, as user growth is critical to keep investors happy. Users that do not pay can be easily converted into paying members.
The paid service was behind 90% of the company’s revenue last year, which climbed to nearly $4 billion. However, paying customers are less than half of the service’s base.
The business model has paid off in recent years for the Stockholm-based company. Last year, Spotify had 86 million free listeners and 71 million paying subscribers, which is more than Apple Music’s customer base.
Spotify’s User Base Could Climb to 200M This Year
After the recent updates, mobile listeners will be able to access playlists faster and decide which tracks they want to be played in the playlists even if they are not paying for the service. The features are very similar to what the paid service offers.
The paid service starts at $9.99 per month and is ad free.
Spotify is confident that its fan base could grow to 200 million users by the end of December 2018. It also hopes the number of subscribers to jump to 96 million this year. Spotify’s greatest rivals include Apple, Google, and Amazon.
Spotify has been often criticized by artists for giving their music away. Also, the record label industry has added pressure for the service to limit the offerings to free users. Last year, Spotify agreed to allow musicians to delay the release of new albums on the free service.
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