Spotify has launched a free service for mobile handsets in as many as 55 markets across the world. Spotify, which is an online music streaming service, launched the worldwide yesterday. The service will cater to devices like tablets and Smartphones.
There are a growing number of such users who wish to stream various tunes right on their mobile handsets. The company does offer free music for desktop PC users that come with ads. However, consumers needed to shell out sums for the on-demand connection for their mobiles.
The latest service will let the users to select the tracks they want to listen to – for free. However, it will be with commercial breaks. The hope in this is that the listeners will one day upgrade and will become subscribers.
Daniel Ek, who is the founder and CEO of Spotify said “The more music you play, the more likely you will pay.” There is a decent consumer base to Spotify around the world. There are presently around 24 million active users. However, 25 per cent of them pay for listening to music without any ad interruptions.
Mr. Ek also announced that there were 20 new markets for Spotify taking the total to 55 markets all over the world. It must be mentioned that the popularity of streaming music has tremendously risen in the United States. But there is also a cut-throat competition as well. Pandora, Sirius XM, Apple’s iTunes and some little-known players are all battling it out to get the listeners attracted to them.
Pandora is a prominent name in the music streaming industry in the US. They have around 70 million active users and their mobile ad revenue is just on the increase as the number of people is rising steadily.
The plans for Spotify are airing an ad every three or four songs. This is the same frequency of ad spots on the company’s free desktop service right now.