Spotify has confirmed it’s experimenting with permitting music labels to advertise songs by including them to customers’ playlists as sponsored content material.
The Swedish-based music platform mentioned subscription payers weren’t included within the small trial.
These whose accounts are affected are in a position to choose out by way of the settings.
Spotify has greater than 140 million lively customers however continues to function at a loss.
It just lately revealed that whereas it had revenues of greater than 2.9bn euros (£2.6bn) in 2016, it reported a internet lack of 539.2m euros (£471.6m).
“This isn’t the silver bullet however as an alternative half of what is going to be a multi-faceted reply to Spotify’s margin woes,” mentioned Mark Mulligan, managing director of Midia analysis.
“In a broader context, this may increasingly presage a wider technique much like that of Fb’s, whereby it successfully begins charging artists and labels for entry to followers.”
Spotify is contemplating changing into a public firm and itemizing on the inventory market.
It says it has greater than 50 million subscribers, who can entry its library of 30 million tracks with out promoting.
The month-to-month subscription is presently £9.99 within the UK, $9.99 within the US and 9.99 euros in France. The corporate operates in 60 international locations.
“We’re all the time testing new promotional instruments that ship the very best relevancy to our customers,” Spotify mentioned in a press release.