Spotify is reportedly in negotiations with major music labels with a view to expanding its free music streaming service to smartphones and tablets in the UK.
According to The Verge, the music service is in talks with Warner Music to overhaul licensing agreements and cut the amount it pays per song streamed. The same report also claims that the company will soon begin similar negotiations with Sony and Universal.
Spotify launched a free mobile streaming service last year in the US. However, complex licensing agreements have so far prevents Spotify from offering its UK customers the same service.
According to industry experts, the company is keen to cement its position as the industry leader in the face of increasing competition.
Spotify has seen an increase in competition in recent months from services such as US-based Rdio and Deezer. The latter is bundled with subscriptions to EverythingEverywhere’s UK 4G service.
However, don’t expect the £9.99 subscription to disappear straight away.
Industry experts have said that the music companies have already taken a hostile stance to Spotify’s desire to lower the amount it pays to publishers per track streamed.