TechCrunch Minute: Spotify’s move to paywall lyrics is putting pressure on free users

Spotify’s slow pace of putting songs behind the paid service wall on its music service is about as popular as you’d expect. The exact details of the update are evolving, but what we can say at this point is that it looks like Spotify has a new feature to try to convert free users to the paid service.

Why It’s the moves behind that matter more than what. Sure, it’s a little strange that Spotify is going to start putting information available for free online behind a paywall, but the company is in a bit of a tough spot today. Because of the quick launch and attractive pricing, Spotify is huge. It generated billions in revenue and helped shake up the music industry forever.

That said, it largely provides paid access to other people’s music. Other companies do the same. Apple is one of them. This means that Spotify has the best pricing power. Features like its annual music review are neat, but don’t allow Spotify to charge more than Apple Music, for its mostly-music-only service.

But since Spotify makes so much more money from its paid accounts than from free users, it can at least Try upgrading them. And there are only so many dials to turn. So, the lyrics go behind a paywall. For those of us who have already paid, this is not an issue. But for budget-conscious people, it may seem like their previous service is breaking down for no reason, which may make them upset. Unless some people convert to paying users, Spotify will face difficulties. It needs gross profit.