Spotify is set to debut a radio-like service that will unify its a la carte offerings with recommendations.
The new service is set to begin operating by the end of the year, according to Bloomberg.
It's unclear, however, whether Bloomberg is really on to something, or simply re-discovering old news.
Most music services include a la carte selections as well as streaming radio services - including Spotify, which added its radio services in December. Although Spotify doesn't really highlight its radio services, each artist page contains an "Artist Radio" function, and users can also create a radio station based upon a track, such as U2's "With or Without You." Spotify's algorithms then find and play back related songs.
"Yes, Spotify already has a radio service," a Spotify spokesman said via email. "I have no info for you on the Bloomberg article."
Rivals like Slacker, MOG, and Rara, among others, have straddled both formats, but with some services emphasizing one over the other. Slacker, for example, allows users to search for and play a specific song under its premium subscription; after playing that song, however, it creates a "channel" of similar music. Slacker and Rara put their channels front and center; Rara subtly hides its a la carte feature behind a magnifying glass in the upper right hand corner of the screen.
Pandora, of course, does not allow users to specifically play a certain song or artist, although it will allow users to create a channel using a specific song as a seed.
What this boils down to, according to Bloomberg, is royalties. Services like Pandora, Slacker, and eventually Pandora pay less in royalties for radio-like services, allowing the companies to reduce costs. Like most of its rival services, users can play Spotify songs for free on the Web, while the service interjects ads every few minutes. Bloomberg reported that the new radio service would be ad-supported, as well. Spotify, like most other music services, charges a small fee for mobile access.
Spotify began as an unlimited music streaming service within the United States, but has said that it will pare that down over time. In March, however, the company said that it would extend its free unlimited listening "without time limits, gimmicks or catches." At the same time, the company has attempted to attract new subscribers via an embeddable "Play" button widget and a makeover of its Android app.
In March, Spotify said that it has over 3 million paying subscribers, with over 10 million active users. Over 20 percent of Spotify's user base pays for the service, it said then.
For more, see PCMag's Spotify review and the slideshow below.
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