Spotify is looking to expand its customer base even more with an ad-supported version of its app for nonpaying customers. People familiar with the matter told the Wall Street Journal that the company has reached a licensing deal with three of major global music labels, allowing the streaming service to offer their tracks for users of this new, free service.
Spotify already offers a free streaming service to users who access their music on a desktop or laptop computer. On the mobile side, customers who wanted unlimited, on demand streaming were required to sign up for Spotify’s monthly subscription service, which starts at $10 a month. When this new ad-infused version debuts, free customers will be able to play a limited number of songs on demand. When they reach their limit, these customers will be able to listen to a free radio service that’s similar to what Pandora offers.

Spotify is expected to announce this new free mobile service at a small event to be held next week in New York. If this rumor pans out, will you be signing up for Spotify just to check out the free version of its on demand service?