Releasing a new version of their terms of service, Spotify has promised to take a harder stance on ad blockers, bots and fraudulent streaming activities, starting March 1st.
Ad blockers have always been an easy loophole for consumers, and a headache for publishers. The company confirmed in March last year that it had 2,000,000 users using ad blockers on the free version of Spotify. While that sounds a lot, it's only 1.3% of Spotify's total user base, yet it warrants enough attention as it restates usage metrics.
The new guidelines specify that “circumventing or blocking advertisements in the Spotify Service, or creating and distributing tools designed to block advertisements in the Spotify Service” may now result in “immediate termination or suspension of your Spotify account.”
During its last quarter earning report announcement yesterday, Spotify shows positive income and free cash flow for the first time since it was founded. Revenue, however, was below expectations because of intense competition from other streaming services, with subscribers increasing 36 percent to 96 million. Paid subscriptions now compose nearly 88% of Spotify's turnover - which is why Spotify wants to release the potential of ad supported revenue. And with Spotify's actual user base of 153,000,000 people across the world (and expanding), ad supported revenue can really bring in the billions.
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