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Spotify Introduces Paywall for Lyric Feature
Spotify has made a significant decision to transition its once free lyrics feature to a paid model, eliciting attention from avid users this week. The alteration, initially identified by Reddit users, was subsequently confirmed by a Spotify representative to TechCrunch.
Public Reaction to the Change
The adjustment received mixed reactions from the general public, with one Reddit user expressing frustration due to being deaf and relying heavily on lyrics to comprehend songs. Another commenter emphasized the diminished utility of Spotify without a premium plan.
Inflation in Premium Membership
Spotify Premium experienced a surge in pricing over the past year, with the cost of a membership escalating to $10.99 a month in 2023 – marking the first price increment in 12 years. Speculations of further price hikes in the future have emerged, as reported by Bloomberg. Despite these alterations, Spotify observed a surge in the number of subscribers throughout 2023 and maintained this positive trajectory in the current year.
Financial Success and Strategic Shifts
Spotify achieved revenues of around $3.9 billion in the initial quarter of 2024, surpassing market expectations following a year characterized by substantial layoffs. However, the company expressed aspirations to augment its subscriber base further. The decision to gate free features such as lyrics behind a paywall may serve as a strategic maneuver to convert complimentary users into premium subscribers. TechCrunch outlined that Spotify commenced testing this approach during the previous autumn, prompting users seeking free access to lyrics to opt for Spotify Premium instead.
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