It seems that Apple is getting part of its wish and Spotify will at least severely restrict users’ ability to stream songs for free. Digital Music News’ sources claim that Spotify is planning to limit users’ ability to stream music for free to just three months. After this, they’ll have to pay a subscription fee to continue having unlimited access to the service.
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Apple has reportedly been pushing record companies to end their agreements with Spotify to allow for a free streaming tier that relies on ad-supported streaming to generate revenue. This particular restriction is short of what Apple was calling for and is apparently being pushed by major labels Universal Music Group and Sony Music Entertainment, who are not happy that an estimated 75% of Spotify’s 60 million users don’t pay a time in subscription fees.
Nonetheless, this is a win for Apple, which is planning to unveil its own Spotify-like music streaming service at WWDC next month. Recent reports have suggested that while Apple won’t offer a free unlimited streaming tier for the service, it will offer some limited free streams as well as a free trial period for prospective subscribers. Apple is also expected to rely on artist exclusives as a way to reel in new subscribers.
