Streamer shakes up model.

Spotify is experimenting with a tactic to increase paid subscribers by placing its lyrics feature behind a paywall for certain free-tier users. Selected non-paying users are now greeted with a message that prompts them to “Enjoy lyrics on Spotify Premium.” This move comes in response to Spotify’s uneven user growth, with a 34% increase in monthly users for the ad-supported tier, reaching 343 million, but only a 17% growth in paid monthly listeners, totaling 220 million. Spotify PR executive CJ Stanley stated that the company is currently testing this with a limited user group in specific markets, without providing further details on the rationale or potential permanence of the change. Despite its popularity over competitor Apple Music, Spotify still grapples with revenue challenges, reporting over €2.7 billion in premium subscriber revenue in Q2 2023 compared to €404 million from its ad-supported tier. While the company’s stock saw a 94% increase since the start of 2023, it remains below its all-time highs, closing at nearly $160 per share.