Spotify, the popular music streaming app, is getting ready to launch a browser-based version of their service, but rumors of a potential drop in the price for their premium service don't add up.
On Saturday, TechCrunch's Josh Constine reported the app will be moving into your browser in the near future. Currently, users have to download a specific program to access Spotify's streaming service. Constine described a major redesign that will, "focus more on discovery, including following the listening habits and playlists of influencers in addition to your friends." The idea is that a browser based version will help expand the user base. It would be easier for people to listen and share songs with one another if it operated within a browser. One source told him the company is considering dropping the price of its premium ad-free service, too.
But that isn't happening, as AllThingsD's Peter Kafka explains. Spotify pays too much of a percentage to record companies to lease their music for them to drop their prices. Spotify pays $7 of its $10/month fee for premium service to record companies. If it were to lower that, at all, their books would fall off the deep end. Plus, they tried a price decrease in Spain and it didn't work:
Spotify is open to monkeying around with its pricing and lots of other features. For instance, it’s currently testing a version of the service that doesn’t require new users to sign up via Facebook. And in the long run, it would probably like to cut its prices if it could figure out how to make the economics work. But Spotify has already tested out a price cut, in Spain, and found it had little effect on take-up rates. So for now, if you want to hear Spotify without ads, or if you want to hear it on an iPhone or Android machine, it’s going to be $10.
Right now, the service has 4 million paying users. It's obviously hoping to expand that number, and adding a browser-based version of the software will at least raise the company's profile. A higher profile means more users, and hopefully, more users that pay. Let's hope it works.