Spotify is testing ‘Sponsored Songs’ program that allows labels to promote individual songs to non-paying users, the company has confirmed.
Unlike the regular ads, which appear on banners, Sponsored Songs are integrated into playlists that users follow. Users can opt out of this through a setting both on desktop and in-app.
— Chris Messina 🦅 (@chrismessina) June 18, 2017
— Liam Maloney (@liamtmaloney) June 19, 2017
If the test program is successful, Sponsored Songs could be rolled out officially to users on free tier, the company told TechCrunch. However, it remains unclear if the opt-out setting will still be available to non-paying users.
The program is an extension of Spotify’s effort to add more revenue streams. Since last year, Spotify has allowed brands to sponsor playlists, allowing them to add a logo and video ads.
With 140 million active users, Spotify earned a $US3.3 billion in revenue last year, but it still recorded an operating loss of $US389 million.