Music streaming service Spotify are rumoured to be in negotiations to allow free users to stream music from their mobile devices.
The web service, which has on average 5m paying subscribers globally (as well as around 15m ‘free’ ad-funded users), is due to meet up with the major music labels over the coming weeks to renegotiate contracts.
Currently, Spotify’s free service is only available on computers, with the top-tier (£10) service required to access the service through your iPhone or iPad.
Spotify’s argument with labels will likely be that it needs this agreement in order to achieve profitability. Despite the service’s large number of monthly-paying users, Spotify is believed to be operating at break-even.
According to an industry insider, “Everybody in the industry wants to see Spotify succeed; nobody in the industry can afford to see [Spotify] go down the tubes.”
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