Spotify in talks with music companies to offer free music streaming to smartphones
Spotify is apparently in talks with music companies in an effort to bring the free music streaming service to smartphones.
Currently, those looking to use the service on-the-go must pay a £9.99 monthly fee.
However, Spotify wants to boost the amount of free music it offers to smartphone users in the UK, in bid to gain an edge on rivals such as Napster, Rdio and Deezer who currently use to same pay-per-month strategy.
The negotiations with music companies for new licencing agreements are expected to begin this month.
According to US technology site, The Verge, Spotify has already started negotiations in the UK with Warner Music – home to Bruno Mars and Fleetwood Mac – and will begin talks with the other two music majors, Sony and Universal, in the coming weeks.
Research published by the BPI, the UK music industry trade body, earlier this month showed the increasing importance of streaming services to customers and record labels, finding that products such as Spotify contribute nearly £50 million annually to music labels, accounting for 15.2 per cent of their digital income.