Spotify has confirmed to TechCrunch that it is testing a “Sponsored Song” on its free tier. Using the new ad unit, the company will allow companies and artists to promote their singles to subscribers of its free tier.
Spotify hopes to make this an additional source of revenue as “Sponsored Song” will require labels and artists to pay the streaming music company to ensure the songs show up in the playlists that you follow. Sponsored Songs can be instantly downloaded by a listener without having to click an ad first. Spotify will likely show these sponsored songs to listeners with similar music taste for maximum reach and downloads.
For now, Spotify is still testing Sponsored Songs and if they are successful, it will only roll it out to its free tier subscribers. The company will be providing an opt-out option from Sponsored Songs under the Settings menu, but the option will presumably not work for users on the free tier.
— Liam Maloney (@liamtmaloney) June 19, 2017
Sponsored Songs are highlighted with a ‘Save Song’ button appearing below them as show from the way the company has highlighted the ”Call Me” song from NEIKED in the above image. This way, the company is hoping to easily attract a listener’s attention to a sponsored song. For now, the company is rolling out Sponsored Songs to selected listeners only.
It’s unclear how much Spotify will charge labels and artists for Sponsored Songs, but the company is hoping to maximise its revenue and margins with this move especially from its free tier subscribers.[Via TechCrunch]