Spotify, a digital platform for music, podcasts, and videos, has recently been in the news for testing a feature that blocks access to lyrics for some of its non-paying users, including users from Nigeria. A message to this effect was sent to some users of the free tier of Spotify, and it read, “Enjoy lyrics on Spotify Premium.”
According to a report from a Spotify PR executive named CJ Stanley, this modification is “only a test.” In an email sent to TechCrunch, Stanley mentioned that the firm is “currently testing this with a limited number of users in a pair of markets.” In recent years, Spotify has not paid a great deal of attention to its free tier, despite the fact that it has long touted its free-with-advertising tier as the model for the music industry of the future. However, despite growth in both ad-supported and paying monthly listeners, Apple continues to be a formidable competitor for Spotify.
CJ Stanley, a PR executive with Spotify, could not disclose any specifics when asked about the possibility that this test will be made permanent. It would appear that the corporation is conducting a limited test in order to gauge the reactions of users. Despite this, it is still possible to find free lyrics easily accessible online.
The price of a share of Spotify’s stock has been volatile, but in 2023 it experienced an increase. However, the stock has not yet achieved its all-time high, which it attained in early 2021 when it traded for more than $300 per share. At the moment, one share may be purchased for close to $160, which represents a 94% rise from the beginning of 2023.
Read also: Spotify Premium jumps to $10.99, joining YouTube Music price hike
Spotify makes changes to podcasting also
By the first of October, Spotify will no longer allow “white noise podcasters” to take part in its Ambassador Ads programme. This is a programme that pays producers to read advertisements supporting content on Spotify. White noise podcasters are content creators who make a particular kind of podcast that includes sounds of background ambience (sometimes known as “white noise”) in its format.
The purpose of these podcasts is to provide listeners with a tranquil and relaxing background ambience that may be utilised for a variety of purposes, including falling asleep, meditating, or concentrating, and they consist of recurring, relaxing sounds such as rain, ocean waves, or static noise.
According to the music-streaming company, the money spent on advertising ambient noise playlists did not produce significant interaction from active listeners, thus this change is part of the company’s attempts to raise its annual profits. The decision comes as part of the company’s efforts to increase its annual profits.
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Notably, despite the fact that white noise podcasters will not receive marketing support through Ambassador adverts, they will still have the opportunity to make money on the platform by way of paid subscribers, listener support, and automated adverts.
The audience requirement for conventional podcasters to be eligible to participate in the Ambassador Ads programme has been increased from 100 to 1,000 unique listeners in the most recent 60 days by the company.
The Automated Ads programme, which currently offers members a revenue share of fifty percent and is being expanded by the corporation, is also being expanded. Despite a 27% growth in paying members, this move comes as Spotify finds methods to improve its financial performance.
The company is having trouble collecting income per subscriber and has had layoffs in its podcasting sector. This decision comes as Spotify seeks ways to improve its financial performance.
