TechCrunch Minute: Spotify's decision to limit access to lyrics is impacting free users

Spotify's gradual move to restrict access to lyrics for its music service to paid subscribers is receiving mixed reviews. Specific details of the update are still developing, but it appears that Spotify is introducing a new feature to entice free users to become paid subscribers.

The rationale behind this decision is more significant than the action itself. While it may seem peculiar for Spotify to hide information that is readily available online behind a paywall, the company currently faces certain challenges. Despite its early entry into the market and competitive pricing, Spotify has become a major player in the music industry, generating billions in revenue and revolutionizing the music landscape.

However, Spotify primarily offers access to content created by other artists, a model shared by other companies like Apple Music. This limits Spotify's ability to increase prices significantly. While features such as its annual music review are appealing, they may not justify higher costs compared to rival services.

As Spotify earns more from paid subscriptions than free users, it is attempting to encourage them to upgrade. With limited options available, Spotify has decided to move lyrics behind the paywall. While this change may not affect existing paid users, budget-conscious listeners may perceive a decline in the service without a clear reason. Despite facing criticism, Spotify is willing to weather the complaints as long as some users transition to paid subscriptions to boost its gross profit margin.