Spotify Will Allow Labels To Pay To Place "Sponsored Songs" On Playlists

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Spotify's experiment will effect those who use its free tier.

Spotify will launch a trial that allows record labels to pay to place songs on users' personal playlists, the BBC reports. The practice will only affect those who use the streaming platform's unpaid tier.

The songs will be added according to each users's own listening habits. Users can opt out of the trial in the settings. "We are always testing new promotional tools that deliver the highest relevancy to our users," Spotify said in a statement.

"In a broader context, this may presage a wider strategy similar to that of Facebook's, whereby it effectively starts charging artists and labels for access to fans," Midia Research's Mark Mulligan told BBC.

Though Spotify recently eclipsed 140 million users, it has reported $581 million in losses and $3.06 billion in revenue in 2016. All three major record conglomerates (Song, Universal, & Warner) have Spotify ownership stakes.

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