Spotify goes after YouTube with new, free music service

25 April, 2018, 01:07 | Author: Chad Warren
  • Spotify Releases New Features

By improving the free experience enough to keep people hooked, Spotify could effectively convince many more users to buy into their monthly subscription.

In total, the new free tier will include on-demand access to 15 playlists in total (with more playlists available with limitations like shuffle).

It's also easier for free users to create their own playlists, although those playlists can only be listened to in shuffle mode.

'Our customers always tell us that music discovery and listening is a personal experience, and we are enhancing the free experience with this in mind, ' said Babar Zafar, vice president of product development at Spotify, in a statement. The reduced data load that Spotify promised today has the potential to make its streaming services far more friendly to users in those countries. Indeed, Spotify notes that 60 percent of its Premium subscriptions started out as free users.

Spotify will use artificial intelligence to suggest songs to add to the list as users build their library. This ability to play songs as you prefer will give users more freedom to actually experiment with what they listen to, Zafar said.

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Another new feature cuts down on data consumption by 75%.

Spotify is positioning its free service as a competitor to terrestrial radio worldwide, not to mention more direct competitors such as Apple Music, and that Spotify pays more to artists and rights holders than terrestrial commercial radio does.

The Spotify redesign marks the first major change to Spotify's free tier since 2014.

Its revenue for fiscal year 2017 is believed to be about $4.99 billion (£3.63bn). The premium app has long had an offline mode: Paying users can listen to pre-download playlists or songs without racking up cell phone bills.

The company has recently been found to be testing "Spotify Voice", an enhanced version of its voice recognition software.