Spotify may be doing its best Boyz II Men impression as the end of the road seems to be approaching for its unlimited free access plan. There are reports that the streaming giant is limiting its free, ad-supported access to just three months. The three-month plan, which is backed by the major labels Universal Music Group and Sony Music Entertainment, would allow current, free-access, ad-supported subscribers to continue their plans for an additional six months, while new users would be limited to three months only.
Of course the labels have the most power regarding the negotiations with Spotify. The streaming service lives and dies based on the major labels providing licensed music for the site to stream. Being that we live in an era with only 3 major labels, the options are limited for Spotify to do anything else but comply.
Spotify has offered huge cash advances, substantial equity stakes , or both to secure major label licensing for its service. We will see where this goes as their is so much attention on the streaming industry right now.
