Spotify planning global expansion of free mobile web radio, report says
Spotify is reportedly preparing to launch a mobile streaming radio product outside of the US next month. The free service would be available everywhere the company currently operates and would be ad-supported, according to three people claiming knowledge of the deal as reported by Bloomberg.
The web radio service is currently offered to desktop users in 20 different countries although the US is the only region that has access to this feature on mobile devices. Sources say Spotify is close to reaching an agreement with record labels that would allow them to expand this feature to all regions with the belief that it would attract more paying subscribers.
As of writing, Spotify boasts 24 million active users and six million paying members. A full 90 percent of paying members shell out $9.99 per month for unlimited, commercial-free music on computers and mobile devices. The remaining 10 percent opt for the cheaper $4.99 plan which includes access to unlimited, commercial-free music only on a computer.
Spotify’s largest rival, Pandora, offers similar functionality but has yet to expand outside of Australia, the US and New Zealand. As of last month, the company said they had 67.7 million active users in the US. The majority of these users utilize the service’s free, ad-supported feature.
Now appears to be as good a time as any to expand your reach if you are in the streaming music business as rumors continue to heat up surrounding the launch of a similar service from Apple. Another competitor, Rdio, is now available in 24 different countries after launching in seven new areas just this week.