Spotify invests in licensing these lyrics, and an increase in premium subscriptions could potentially empower songwriters to negotiate higher compensation.
Spotify, in its quest to convert more freemium users into paid subscribers, has paywalled lyrics on its platform. This is aimed at upping the value proposition of its premium subscription service. While Spotify hasn’t issued an official statement yet, it has mentioned its approach to feature availability may vary across different regions and devices. I can, however, confirm Nigeria users are affected.
The introduction of this paywall mechanism restricts freemium users from accessing lyrics, with a message that reads “Enjoy lyrics on Spotify Premium”.
In certain markets, it appears that Spotify is trying a monthly limit on access to lyrics for free accounts.
So basically, Spotify invests in licensing these lyrics, and an increase in premium subscriptions could potentially empower songwriters to negotiate higher compensation. I’m totally with this – not without the dilemma of balancing accessibility and songwriters’ rights. As a music business professional, blocking lyrics from free users is logical enough but wearing my Product Design hat, I can’t look past the accessibility ‘snub’.
Like, is there a way to guarantee better compensation for songwriters while prioritizing accessibility practices such as providing lyrics at no extra costs? I’ve seen commentaries, like the one below, which are valid.
There’s gotta be some way to strike a balance between commercial interests and ensuring that music is accessible to everyone, including the Deaf and hard-of-hearing community, without imposing extra costs on them.
In Q1 2024, the company disclosed its paying subscribers totaled 239 million, marking a 14% year-over-year increase and a rise of 3 million from the preceding quarter. The total monthly active users, including both paying and ad-supported subscribers, reached 615 million, reflecting a 19% year-over-year growth.
For the quarter, the company achieved an operating income of $182.41 million, a milestone described as “a new quarterly high.” This achievement was attributed to “lower personnel and related costs and marketing spend.” Remember, Spotify laid off about 17% of its workforce in December last year.
