Spotify eases restrictions on free accounts amid revenue pressure

The streaming service confirmed on 16 September that it is “rolling out updates globally” to allow ad-supported users to search for and stream individual tracks. Until now, free accounts on mobile devices were limited to shuffle play.

The change has been welcomed by non-paying users, with many sharing positive reactions on social media. However, some Premium subscribers have expressed concern about the value of their paid plans, questioning the incentive to continue paying for features such as AI-generated playlists and lossless audio.

The development comes after Spotify reported a 1% year-on-year drop in advertising revenue during the second quarter of 2025, leading to the departure of several senior executives in the advertising division. The company has previously stated its ambition to generate 20% of overall revenue from advertising.

The move also follows a broader decline in the US streaming market. The Recording Industry Association of America (RIAA) recently confirmed that “free streaming” revenue fell in the first half of 2025, marking the first such half-year drop in more than a decade.

Spotify’s decision contrasts with past experiments that introduced new restrictions for free users, such as temporary limits on lyrics access in 2024. It also diverges from industry proposals such as Sony Music’s 2023 suggestion that ad-supported listening in established markets could become a paid feature.

While the easing of restrictions may strengthen Spotify’s advertising appeal in the short term, the long-term impact on its Premium subscriptions remains uncertain. In some markets, free streaming already comes with limits: in Japan, for example, non-mobile ad-supported listening is capped at 15 hours per month.

Spotify has yet to indicate whether further changes will be introduced, but the balance between attracting advertisers and retaining paying customers is likely to be a key issue in the months ahead.