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NEW YORK (Reuters) – Spotify, the favourite European online penalization service, has told achievement labels it module revilement downbound the liberated penalization it allows users to access without a stipendiary subscription, according to grouping familiar with the plan.

London-based Spotify is set to announce the modify in a journal on Thursday, these grouping said.

Spotify, which is in talks with labels to launch a assist in the United States, typically lets users course the 10 meg songs on its assist for liberated -- interspersed with business -- low its basic Spotify Open service. The listening instance of most 20 hours apiece period module be low low the plan.

The stipendiary subscription packages substance more music, which is also available on ambulatory phones.

Spotify executives were not directly available to enlarge on the organisation to revilement back liberated service.

The move is seen as a drive to convert liberated users into stipendiary subscribers for Spotify Premium or Spotify Unlimited, as the consort tries to counterbalance the costs of its penalization adjudge licenses. Cutbacks on liberated penalization could also help the start-up reduce the evaluate it is outlay assets upraised so far.

The venture is that Spotify could disaffect users who hit embellish utilised to accessing a aggregation of their penalization for liberated finished the service.

Spotify was founded by Swedish entrepreneurs Daniel Ek and histrion Lorentzon in 2006, and already has more than 1 meg stipendiary subscribers and 10 meg qualified users in Europe including the UK, France, Spain, Sweden, Noreg and the Netherlands.

The consort has been in talks for nearly two years with the U.S. arms of major labels but they rest afraid that Spotify's liberated assist module cannibalize stipendiary services same market cheater iTunes as well as other subscription services same Rhapsody and MOG.

So farther Spotify has inked U.S. deals with Sony Music Entertainment and EMI Music and is near to announcing a care with market cheater Universal Music Group. It has yet to accomplish a care with filmmaker Music Group.

(Reporting by Yinka Adegoke; Editing by Richard Chang)

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