Report: Spotify Planning Free Mobile Streaming

Spotify is planning a free, ad-supported version of its streaming-music service on mobile devices, according to people familiar with the matter, after previously making mobile users pay a monthly fee.

According to wsj.com, the Sweden-based music company has reached licensing deals with all three of the global music companies to use their recordings on the new service, these people added.

Until now, a free version of Spotify was available only on desktop and laptop computers.

Spotify, which has 6 million paying subscribers and 20 million active users world-wide, has been negotiating for nearly a year with the three major record companies— Sony Music Entertainment, Universal Music Group and Warner Music Group—over the rates it will pay them to play songs on the free mobile service, and over how much direct control users have over what they listen to, these people said.

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