updated 06:20 pm EDT, Wed April 4, 2012
Spotify may havw slow US paying subs
Spotify's ability to lure paying subscribers in the US might be disappointing labels if a rumor proves true. Those near the labels have supposedly told the New York Post that there were fewer paying for the $5 or $10 tiers than the industry had hoped for. Free users either weren't staying subscribed for long, weren't leaping to the $10 Premium tier, or weren't renewing, one of the unnamed contacts said.
Spotify hasn't commented on the report, and has typically only provided milestone updates as to its progress.
The streaming music service currently has three million listeners and has been accelerating its overall adoption rate ever since coming to the US last year. Reportedly, however, just 600,000 of those are paying customers, or about a fifth of the user base. It still leaves the majority of users on the ad-supported tiers, which pay both Spotify, labels, and artists less than a full subscription.
While unconfirmed, the move would come just after Spotify extended unlimited trial access in the US rather than imposing the 10-hour and five-play caps that it said would happen after users' test periods expired. The gesture is less likely to convert those customers to paying users, but it may prevent them from dropping the service too quickly in favor of something else, such as Rdio or Slacker.
Frustration could see labels reduce their involvement in subscriptions and focus more than they have recently on pay-per-track stores like iTunes and Amazon MP3, which continue to form the brunt of legal music revenues in the US.