Though Spotify never shared official numbers, it’s likely that Car Thing underperformed or was just not worth continued investment in today’s tighter economic market.
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It’s been three years since Spotify acquired live audio startup Betty Labs, and yet the music streaming service isn’t leveraging the technology to its fullest potential — at least not in our opinion. Betty Labs-owned Locker Room launched in 2020 as a sports-focused social audio app where sports fans could engage in live conversations, create […]
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Spotify has hiked its premium subscription in France by an eye-watering €0.13, in response to a new music-streaming tax.
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Spotify is notifying customers who purchased its Car Thing product that the devices will stop working after December 9, 2024. The company discontinued the device back in July 2022, but had said at the time that it would still support the units that had already been sold. The company’s plans for the device have changed, […]
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Spotify’s addition of its AI DJ feature, which introduces personalized song selections to users, was the company’s first step into an AI future. Now, Spotify is developing an alternative version of that DJ that will speak Spanish. References to the new AI DJ were spotted in the app’s code by tech veteran and reverse engineer […]
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Spotify launched its own font, the company announced on Wednesday. The music streaming service hopes that its new typeface, “Spotify Mix,” will help Spotify distinguish its own unique visual identity. Spotify Mix is a sans-serif typeface designed in partnership with Dinamo Typefaces, a Berlin-based type design studio that has worked with major companies, including Burberry, […]
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Amazon has historically operated audiobook marketplace Audible as a separate entity, unconnected to the retailer’s broader goals and ambitions. Today, that’s changing a bit with the launch of a test that will allow Audible users to receive recommendations about what to listen to next based on their Prime Video viewing behavior. The company says this […]
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Spotify’s slow movement to put lyrics behind its paid service wall in its music service are about as popular as you would expect. Precise details of the update are evolving but what we can say at this point is that it seems that Spotify has a new feature up its sleeve to try and get free users to convert to is paid service.
The why behind the move matters more than the what. Sure, it’s a little weird that Spotify is going to start putting information that is freely available online behind a paid wall, but the company is in a slightly difficult position today. Thanks to an early start and attractive pricing, Spotify is huge. It does billions in revenue, and helped shake up the music industry for good.
That said, it largely offers paid access to other peoples’ music. Other companies do the same. Apple is one of them. That means that Spotify’s pricing power is modest at best. Features like its yearly music review are neat, but don’t allow Spotify to charge more for its mostly-music-service than, say, Apple Music.
But as Spotify makes a lot more money off its paid accounts than it does off free users, it can at least try to get them to upgrade. And it only has so many dials to turn there. So, behind the paywall go the lyrics. For those of us who already pay, it’s a non-issue. But for the budget conscious, it may seem that that their prior service is getting worse for no reason that they can suss out. So long as some convert to paying users, Spotify will endure the gripes. It needs the gross profit.
Spotify has apparently found a new way to push its free users to a paid subscription: It’s putting lyrics behind a paywall. Following various reports citing frustrated posts from users on Reddit, the company is quietly confirming the change — but without a direct statement. Instead, the company told TechCrunch simply that Spotify’s features can vary over time, between markets and across devices. The response indicates the change to lyrics may be more than just a test but that Spotify isn’t yet prepared to make an official announcement about affected markets.
There were some indications that Spotify was heading in this direction, however. Last fall, the company was spotted locking down lyrics for nonpaying users. Free users who tried to access the feature would see a message that read, “Enjoy lyrics on Spotify Premium.”
However, at that time, a Spotify spokesperson clarified that the changes were “only a test” that was taking place with a limited number of users in a “pair of markets.” Spotify is no longer referring to the changes as a test, though it’s unclear why it wouldn’t document access to lyrics as being a premium feature somewhere on its website — like on the page where users can upgrade plans or within its help documentation. That could be because the company is still testing the monthly limit on lyrics for free accounts; free users report seeing messages that tell them that every time they tap “Show lyrics,” it counts toward the new limit.
Spotify didn’t offer any more detail about why it’s now paywalling lyrics, but clearly it’s a bid to push more people to its paid tier. In its most recent quarter, the company reached more than 600 million monthly active users, ahead of estimates, and paid subscribers were up to 236 million+, representing 15% year-over-year growth. However, quarterly revenue had missed analyst expectations of 3.72 billion euros, coming in at 3.67 billion ($3.94 billion) instead.
Whether blocking lyrics will push more people to subscribe remains to be seen. Lyrics are easily available and free via the web and in other apps that work alongside Spotify, like Genius, Apple’s Shazam or Musixmatch, for example.
Update April 25, 2024 8.30AM ET: Spotify told TechCrunch that Apple has rejected the music streaming service’s update.
“Apple has once again defied the European Commission’s decision, rejecting our update for attempting to communicate with customers about our prices unless we pay Apple a new tax. Their disregard for consumers and developers is matched only by their disdain for the law,” a Spotify spokesperson said.
In a reply to Spotify, Apple said that Spotify’s changes would be approved if the company accepted Apple’s terms related to Music Streaming Services Entitlement (EEA). Here is Apple reply to Spotify in full:
Hello team at Spotify,
We are reaching out to let you know about new information regarding your app, Spotify – Music and Podcasts, version 8.9.33.
As you may be aware, Apple created a new Music Streaming Services Entitlement (EEA) for iOS and iPadOS music streaming apps offered in EEA storefronts. The entitlement allows music streaming apps to use buttons, external links, or other calls to action to direct customers to a purchase mechanism on a website owned or controlled by the developer. You must accept its terms before adding any of these capabilities to your app. Please find more information about the entitlement here.
We note that your current submission includes a call to action to purchase a Spotify subscription on your website. As such, you must accept the terms of the Music Streaming Services Entitlement (EEA) and include the entitlement profile in your app for submission. To be clear, this entitlement is required even if your app does not include an external link (nor does it require that you offer an external link). We will, however, approve version 8.9.33 after you accept the terms of the Music Streaming Services Entitlement (EEA) and resubmit it for review.
The European Commission said it assesses if Apple has fully complied with its decision. The commission also said that it will assess Apple’s App Store changes in relation to DMA.
“In general, if the Commission suspects that there is non-compliance with an adopted decision, it will send the undertaking concerned a Statement of Objections (‘S0’) explaining why it believes there is non-compliance,” a spokesperson for the European Commission told TechCrunch.
The headline has been changed to reflect that. The original story follows.
Spotify said Wednesday that it has submitted a new version of its app for EU users with pricing information and basic site information. Critically, the version doesn’t contain the link to the website.
The music streaming company said it is not opting into Apple’s new Digital Markets Act (DMA) changes that charge a “core technology fee” for developers with more than 1 million annual downloads.
The company said that the new update features bare minimum details that are in line with the European Commission’s ruling.
“Despite Apple’s attempts to punish developers with new fees, we remain committed to giving consumers a real choice in our app at no increased cost. That’s why we have submitted a new update to Apple. It features basic pricing and website information – the bare minimum outlined under the European Commission’s ruling in its music streaming case,” Dustee Jenkins, Spotify’s chief public affairs officer, said in a statement.
“By charging developers to communicate with consumers through in-app links, Apple continues to break European law. It’s past time for the Commission to enforce its decision so that consumers can see real, positive benefits.”
The version is yet to be approved by Apple, so Spotify will still have to wait until it goes live. Once Apple approves this, Spotify’s free users in the EU will be able to see the perks and pricing information of different premium plans.
However, they won’t be able to click on a link to go to the company’s website and buy those plans. Spotify said that the final version will have language indicating that users will need to visit the website via their browsers and buy a plan.
Last month, Spotify submitted a similar update to the App Store with a link to its website. However, Apple didn’t approve that version, and the music-streaming company didn’t hear back from Apple.
Spotify argues that under the DMA, gatekeepers (in this case, Apple’s App Store) should allow businesses to promote different offers to users on their apps.
Spotify submitted the previous update after the European Commission slapped a fine of €1.84 billion ($ 2 billion) on Apple for the company’s anticompetitive practices in the music-streaming market. In response, Apple said it plans to challenge EC’s decision.
“From now on, Apple will have to allow music streaming developers to communicate freely with their own users, be it within the app, or by email, or any other way of communicating,” EC commissioner Margrethe Vestager said at that time.
Natasha Lomas contributed to the report.
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