Spotify Is Testing "Sponsored Songs" In Playlists

  • Posted 9 months Ago

According to the BBC, Spotify has started experimenting with "sponsored songs" in playlists, allowing music labels to promote certain songs. The feature is currently only being tested on the services free users, who are also able to opt out via the settings menu.

According to Mark Mulligan, managing director of Midia research, this could be part of Spotify's strategy to become profitable. "This is not the silver bullet but instead part of what will be a multi-faceted answer to Spotify's margin woes […] In a broader context, this may presage a wider strategy similar to that of Facebook's, whereby it effectively starts charging artists and labels for access to fans."

The "sponsored song" method does throw up some new problems though. For example, would Spotify start purposefully leave hit songs off playlists hoping to force the music labels into paying to promote them?

Either way, in 2016 Spotify reported a net loss of 471.6m, so it certainly needs to start making more money somehow.

Source: BBC
Tags: spotify