Latest in Internet

Image credit:

Universal reportedly wants Spotify to scale back its free streaming

Share
Tweet
Share
Save

Sponsored Links

Spotify might have bent over backwards to lift restrictions on its free streaming service a couple of years ago, but at least one music label appears eager to turn back the clock. Financial Times sources understand that Universal is using licensing negotiations to squeeze Spotify and demand more limits for those who don't pay up, such as restricting the amount of time they can play tunes in a given month. The publisher isn't confirming anything, but CEO Lucian Grainge has lately been chastising the free, ad-based streaming model -- it's no secret that he would like more paying customers. According to one insider, Universal believes that Spotify is directly hurting sales at stores like iTunes.

Whether or not Spotify gives in is another matter. It can't afford to lose one of the major labels, but it's also adamant that having an enticing free tier is crucial to getting listeners to pay. Other music companies, such as Beggars Group, would argue that Spotify is much better than alternatives like YouTube, where there are far fewer limits for free users. And simply speaking, Spotify may have the industry over a barrel -- when streaming is more popular than CDs in the US, pulling a whole catalog could leave a lot of money on the table.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
Tweet
Share
Save

Popular on Engadget

Russia reportedly breached encrypted FBI comms in 2010

Russia reportedly breached encrypted FBI comms in 2010

View
Elon Musk insists 'pedo guy' tweet wasn’t serious accusation

Elon Musk insists 'pedo guy' tweet wasn’t serious accusation

View
Nintendo's SNES-style Switch controllers are now available

Nintendo's SNES-style Switch controllers are now available

View
Mazda will show off its first EV at the Tokyo Motor Show

Mazda will show off its first EV at the Tokyo Motor Show

View
US Senators ask the FCC to review licenses with China-owned telecoms

US Senators ask the FCC to review licenses with China-owned telecoms

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr