Spotify Extends Free Trial Period

posted in: Music News

According to Hypebot, the music streaming service/app Spotify will be extending its free listening period in the U.S. If the service followed their European model in America, listening times would be cut by at least 10 hours per month.

To the relief of their non-premium users, this morning’s announcement stated that Spotify will extend their free period indefinitely: “We’ve been so overwhelmed by the US response to Spotify that we’ve extended the honeymoon for unlimited free listening.”

The news is unexpected since the combined income of advertisements and Spotify Premium memberships – making up just 10% of the company’s revenues – only covers a fraction of their operating costs, which include paying artists and rights-holders for every stream. As Spotify moves to extend free service in America, it will also be launching a huge funding campaign with a $3.5 billion valuation. To date, the company has raised $100 million.