Paid streaming music services have become a lot more competitive with Spotify and Apple Music currently dominating the market. This is why Spotify is planning to launch a new version of its free streaming service.

Sources say that Spotify is preparing a revamped version of its free music streaming service that’s easier to use than the existing one, according to a report by Bloomberg. Details on the revamped free service is minimal at the moment, but it’s primarily aimed towards music listeners on Spotify’s mobile app.

The revamped version of Spotify’s free streaming service will allegedly make it quicker for users to access playlists and have more control over what songs will appear on the top playlists. If this is truly the case, then Spotify’s free music streaming service would be borrowing one element of its ad-free, paid Premium subscription, which currently costs $9.99 a month.

The reason why Spotify wants to do this is because it wants to gain a large number of new listeners in order to satisfy its investors. The Swedish music streaming company just went public last week. Spotify could steer those free users into paying for a subscription, which is why improving its free service is key for the company. Spotify has 157 million active users worldwide, with 71 million paying subscribers (as of Dec. 31, 2017).

Last month, the company published its financial outlook for the full year of 2018. Spotify expects to have between 92 million and 96 million paying subscribers by the end of this year. That figure also accounts for users who are part of Spotify’s Family Plan, which allows up to six people to share one paid Premium subscription. Spotify also expects its revenue to grow 20-30 percent this year, which is less than its 39 percent growth in 2017.

Spotify is currently maintaining its lead over Apple Music, which is believed to have 40 million paying subscribers as of late. That may still be behind Spotify’s figure but it signifies rapid growth for a service that’s barely three-years old. Spotify’s effort to reinvent its free service might also be part of its plan to fend off Apple Music and stay on top.

When will Spotify launch the new version of its free music streaming service? The company has already scheduled an event for April 24 in New York City and it promised to make “a news announcement” of some sort. Bloomberg’s sources didn’t provide an exact date for the launch of the revamp, only stating that it should be announced within a couple of weeks.

Spotify Spotify planning to launch new version of its free music streaming service. Photo: REUTERS/Dado Ruvic