Spotify will expand totally free streaming to mobile phones

Spotify desires to increase the amount of free music it provides to mobile phone users in the UK, in a move more likely to fuel a sharp rise in on-the-go streaming.

Right now, just Spotify subscribers who pay 9.99 a month can enjoy tracks on mobiles and tablet computers after a free 30-day trial.

The electronic music service is likely to enter negotiations with main music businesses this month as it hammers out new licensing contracts.

Spotfiy’s move to broaden its free offering will give it an edge on its streaming rivals, Napster, Rdio and Deezer, all of which charge a regular 9.99 fee to enjoy music on the move.

Just last year, Spotify released a free radio player for Apple iPhone and iPad owners in the US providing limitless songs and stations alongside marketing. Complex licensing arrangements imply that Spotify has been not able to launch this service in the UK but a restored push in the current negotiations with rights holders often see a similar product provided to music fans in Britain.

Based on US technology site, The Verge, Spotify has recently started negotiations in the UK with Warner Music home to Bruno Mars and Fleetwood Mac and will start talks with the other two music majors, Sony and Universal, in the arriving weeks.

Industry experts think London-based Spotify is in pole position amongst streaming rivals to broaden its free offering. The company has were able to convert about a fifth of its 20 million energetic users into paying subscribers and has paid over $500m (327m) to rights holders as its launch in 2006. The loss-making company pays 70% of its revenue to rights holders, which totalled €187.8m (164m) in 2011 based on the latest accessible accounts.

Spotify encounters competition in the UK from US-based Rdio, which released in Britain last year with a related pricing model. Deezer is an additional affordable rival, but possesses the advantage of being bundled into Everything Everywhere’s UK 4G service from the launch in October 2012.

Research published by the BPI, the UK music industry trade body, recently demonstrated the increasing need for streaming services to customers and record labels. Products like Spotify and Rdio contribute almost 50m yearly to music labels, comprising 15.2% of their digital income, based on the research.

Just last year saw the release of the first Official Streaming Chart in the UK, eight years following the introduction of the legal download chart.