Spotify removes lyrics option for free users in Nigeria in latest test

It appears the company is gauging user reactions with this limited test
Spotify plans to layoff its employees this week

Spotify, a digital music, podcast, and video platform has made headlines by testing a feature that restricts access to lyrics for some of its non-paying users, including Nigerians. To this effect, some free-tier users received a message stating, “Enjoy lyrics on Spotify Premium.”

This change is “only a test,” Spotify PR executive CJ Stanley told the Verge. Stanley added in an email to TechCrunch that the company is “currently testing this with a limited number of users in a pair of markets.” While Spotify has championed its free-with-advertising tier as the future of the music industry, it has not given much attention to its free tier in recent years. However, despite growth in both ad-supported and paying monthly listeners, Spotify faces stiff competition from Apple.

Spotify

As for whether this test will become permanent, Spotify’s PR executive, CJ Stanley, did not provide specifics. It appears the company is gauging user reactions with a limited test. Nonetheless, free lyrics are still readily available online.

Spotify’s stock price has experienced fluctuations but saw an increase in 2023, though it has not reached its all-time highs from early 2021 when it traded above $300 per share. Currently, it’s trading near $160 per share, reflecting a 94% increase from the start of 2023.

Another update from Spotify

Starting October 1st, Spotify will no longer allow “white noise podcasters” to participate in its Ambassador Ads program, which pays creators to read ads promoting Spotify content. White noise podcasters refer to content creators who produce a specific type of podcast that features ambient or white noise sounds.

These podcasts consist of repetitive, soothing sounds like rainfall, ocean waves, or static noise, designed to create a calming and relaxing background ambience for listeners, often used for sleep, meditation, or concentration

This move is part of the company’s efforts to increase its annual profits as the money spent on promoting ambient noise playlists did not yield significant engagement from active listeners, according to the music-streaming company.

white noise podcast

Notably, while white noise podcasters will not receive marketing support through Ambassador Ads, they can still earn money on the platform through paid subscribers, listener support, and automated ads.

The company has raised the audience threshold for conventional podcasters to join the Ambassador Ads program from 100 to 1,000 unique listeners in the past 60 days. The company is also expanding its Automated Ads program, offering participants a 50 per cent revenue split. This move comes as Spotify seeks ways to improve its financial performance, despite a 27% increase in paying subscribers, as it faces challenges in generating revenue per subscriber and has undergone layoffs in its podcasting division.

Some of the strides Spotify made in Q2 of 2023

Beyond adding new subscribers and growing its revenue, the company recorded some other achievements worth mentioning. As part of its efforts to create the world’s premier audio market, the platform launched an AI-driven DJ feature for customers in the UK and Ireland. Interestingly, this was the most sought-after feature from users in that region. 

It also gave the desktop mode a makeover as the Your Library and Now Playing sections now offer a better feel and connect users quicker to their favourite songs. To further personalize the user experience, Spotify increased the number of languages on the mobile application to 74. Brands across the world can also now leverage the platform’s new Ad Analytics product. 

In July, the company introduced a site called Afrobeats: Journey of a Billion Streams to document the Afrobeats music genre and its impact on the African continent and beyond. The platform will also offer Afrobeats-focused playlists and podcasts to enable users to stay updated with trends and further understand the fast-growing genre. 

Read More: Spotify increases prices for premium subscribers in the US, could Africa be next?


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