Spotify on iMac

Spotify is said to be gearing up to launch a web-based player that will allow users to listen to their favorite music through their browser, without the need for downloading and installing a native app. There’s little possibility, however, that a price cut will accompany that, as a recent report had suggested.

AllThingsD reports:

Waiting to use Spotify on the Web? Hang on a few weeks.

Waiting to pay $8 a month for Spotify’s premium service? Don’t hold your breath.

Yes, as TechCrunch reported yesterday, the streaming music company is getting ready to roll out a version of its service that will work on a Web browser, instead of requiring special software.

But it’s not, as TechCrunch suggested yesterday, preparing to cut the rate for its mobile, ad-free service by 20 percent.

As the report notes, there are a couple of reasons why Spotify isn’t interested in dropping its prices — at least not yet. First, for every paid subscriber it signs up, Spotify reportedly hands the music labels and copyright owners $7 a month. That means the it’s making just $3 profit on your fee.

If prices drop to $8 per month, it’s only making $1, and that would kill the company’s margins.

Second, Spotify has already trialled a price cut in Spain, and it found that it had little affect on adoption rates. So if you want the service ad-free, and you want access on your mobile devices, $10 a month will be the price for the foreseeable future.

As for the web player, AllThingsD reports that some users will start seeing this “in the next month or so.” Unlike the price cut, Spotify is hoping that this will have an affect on adoption rates. Not only will it make it faster for users to access their music, but it will also make it easier. Users won’t have to worry about installing the company’s native app, which is a particular problem for those using public computers.

[Via: AllThingsD]