Spotify, the popular music streaming platform, has announced that it is conducting a test to remove lyrics from the free tier for some users. The company stated that the test is aimed at improving the user experience and will be conducted on a small group of users initially. This move has sparked concerns among users, who rely on the lyrics feature to enjoy their favorite songs.
The lyrics feature on Spotify allows users to view song lyrics in real-time while listening to music. This feature has been available on the platform for several years and has become a popular tool for music lovers. However, the company has decided to conduct a test to remove the lyrics feature from the free tier for some users. This means that users not subscribed to the premium tier may not be able to access lyrics for some songs.
Spotify has stated that the test will be conducted on a small group of users. The company has not provided any further details about the test, including the criteria for selecting users or the duration of the test. Some users have expressed concerns that this move may be a precursor to removing the lyrics feature from the free tier altogether.
Latest earnings report
Spotify informed investors that the number of monthly users on its free tier had surged by 34% over the past year, reaching 343 million. While the company also experienced growth in the paying monthly listeners during this timeframe, the increase was less pronounced, at 17% and totaling 220 million.
Although there is still growth in its user base, it’s essential to note that Spotify is currently not profitable, especially compared to its chief competitor, Apple, which holds the title of the world’s most valuable company. While Spotify maintains a higher level of popularity compared to Apple Music, it is evident that the company must persuade more of its free users to convert into paying subscribers. Despite Spotify’s efforts to invest in advertising-related products and offer freebies, its revenue figures reveal the true story. In Q2 2023, Spotify reported over €2.7 billion in premium (paid-subscriber) revenue, whereas its ad-supported revenue during the same period was a comparatively modest €404 million.
The decision to remove the lyrics feature from the free tier has sparked mixed reactions from users. Some users have expressed disappointment and frustration, stating that the lyrics feature is crucial for their music listening experience.
Spotify has emphasized that the test is not a permanent change. The company has stated that it will evaluate the results and decide based on user feedback. Spotify is committed to continuously exploring new features and improvements to provide the best possible user experience.