Spotify is testing sponsored songs for free variant

Spotify is testing a feature that allows users of the free variant to see sponsored songs in their playlists. The company receives compensation for this from the music labels, making this a source of income in addition to paying users.

The Swedish company confirmed to TechCrunch that it is testing the feature. If the trial is successful, the feature can be made officially available. This only applies to users of the free version of Spotify, who currently hear advertisements between their songs.

The option came to light when users found a button with which they can turn ‘sponsored content’ on and off, which indicates that it is an opt-out function. However, according to TechCrunch, it is not yet clear whether free users can actually use this feature. If the function is on, sponsored songs can appear in playlists and possibly also in other places within Spotify.

The ability to charge labels to promote certain songs in the service is a potential new source of revenue for Spotify. The company recently announced that it suffered a loss of 349 million euros last year, partly due to investments. The annual turnover increased in 2016 by 1 billion euros to 2.93 billion euros. In addition, the company said it has 140 million users around the world.