Spotify Extends Unlimited Free Listening in the U.S.

03/29/2012 1:05 PM |


In Europe, the much-beloved music streaming service Spotify waited 9 months before severely limiting free accounts to 10 hours of music listening per month, in an attempt to push folks towards revenue-generating “Premium” accounts. Had they gone that route with U.S. users, given the nearly human-baby-growing-length time spanned from their North American launch last July, the plug would be eminently pulled. But the company announced this morning that they are going to keep things free-flowing for the foreseeable future.

This move costs them money, by the way, as more users means more royalty payments. Since it’s launch, artists have consistently grumbled over the fractions of a cent the service pays them for streams, but even that pittance adds up. Hoping not to quell their rapid growth (the company is rumored to have been valued at 3.5 billion already!) they are instead trying to raise capital to keep the gravy-train rolling. Listeners are probably going to have to pay sooner or later, but not yet. So keep that habit a-forming.

(Hypebot via Prefix)

Follow Jeff on Twitter @jeff_klingman.