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.

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.