Spotify to Develop New Version as Free Service

Spotify Technology SA (NYSE: SPOT) is developing a new version of its free music service, according to Bloomberg, citing sources familiar with the matter.

If the new move for its free users does happen, it would this the first major move since the company went public through direct-listing back on April 3.

Spotify is looking to upgrade its free service to make it easier for users, especially customers on mobile devices. The announcement is expected to come within the next several weeks, according to the sources.

The changes is Spotify’s way to attract new and larger numbers of listeners for its user growth. The free service generates customers in which the company can steer into paid offerings, says Bloomberg. Paying users account for less than half of Spotify’s customer base, but subscribers generated 90 percent of the company’s revenue in 2017.

The current free plans prevents users from selecting tracks in a playlist, but the new change will allow users to access playlists quicker and have more control over the music in the playlist.

Currently, Spotify offers premium subscription starting at $9.99 a month. The company has partnered with Hulu to launch a subscription for $12.99 a month to offer users both services. The initiative was to attract customers into the largest global music streaming service. and a growing media streaming service.

Spotify had 157 million at the end of 2017, with 71 million paying users. The company forecasts user growth to reach 200 million on top of 96 million paying subscribers with revenue of $6.6 billion by the end of the year.

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