Spotify has implemented a new strategy to nudge free users toward a paid subscription: restricting access to song lyrics. Users have expressed frustration on Reddit over this change, and Spotify has confirmed the move, albeit indirectly. Instead of a direct statement, the company mentioned to TechCrunch that its features can vary across devices, markets, and over time. This suggests the shift toward paywalling lyrics is more than just a temporary test.
The shift towards limiting lyrics for free users started making waves last fall when the company was spotted denying non-paying users access to lyrics, instead prompting them to upgrade to Spotify Premium. At that time, Spotify's response suggested it was a test affecting only a limited number of users in select markets.
Now, Spotify's decision is clearly more permanent, though it remains unclear why they are not openly listing access to lyrics as a premium feature on their website. The company might still be testing the monthly limit on lyrics for free users, who report seeing messages that every time they select "Show lyrics," it contributes to a new limit.
The reasoning behind this decision is likely to push more users to subscribe to the premium tier. Spotify’s most recent data shows over 600 million monthly active users and 236 million paying subscribers, marking a 15% increase year-over-year. Despite these impressive numbers, quarterly revenue fell slightly below analyst expectations.
Whether limiting access to lyrics will encourage free users to upgrade remains uncertain. Alternatives for accessing lyrics are widely available for free on the web or through other apps such as Genius, Apple’s Shazam, or Musixmatch. Ultimately, it remains to be seen how this new approach will impact Spotify's user engagement and conversion rates.