Spotify Considers Adding Sponsored Songs to Playlists

Spotify recently announced that they may be adding sponsored songs from labels users’ playlists across the platform for non-subscription based users.

According to the company, it was a small trial run and users were able to opt out of it in their settings.

This is a new attempt for the streaming juggernaut to generate more funds as they continue to operate at a loss of $600,776,640 in 2016. Their 140 million users and 50 million subscribers generate roughly $3.2 billion in funds.

“This is not the silver bullet but instead part of what will be a multi-faceted answer to Spotify’s margin woes,” said Mark Mulligan, managing director of Midia research to BBC News. “In a broader context, this may presage a wider strategy similar to that of Facebook’s, whereby it effectively starts charging artists and labels for access to fans.”

It is also said that Spotify is considering going public on the stock market.

“We are always testing new promotional tools that deliver the highest relevancy to our users,” Spotify stated.

Justin Sarachik
Justin Sarachik
Justin is the Editor-in-Chief of Rapzilla.com. He has been a journalist for over a decade and has written or edited for Relevant, Christian Post, BREATHEcast, CCM, Broken Records Magazine, & more. He's written over 10,000 articles, done over 1,000 interviews, and is in post-production for documentaries on Danny "D-Boy" Rodriguez & Mario "Machete" Perez. He's the project manager of the upcoming video game Run the Court and of the media brand Crimefaces. Justin likes to work with indie artists to develop their brands & marketing strategies. Catch him interviewing artists on Survival of the Artist Podcast & creating videos on his social media channels.
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