New rules in Spotify’s updated Terms of Service policy state that those who use ad blockers could see their accounts immediately terminated or suspended.
The rules state that “circumventing or blocking advertisements in the Spotify Service, or creating or distributing tools designed to block advertisements in the Spotify Service” […] “may result in immediate termination or suspension of your Spotify account.”
13-year-old Spotify reported its first quarterly operating profit of €94 million ($107 million) and now has 96 million subscribers. The streaming giant understands the importance of its advertisers on the platform; hence a strong-armed approach to those who wish to dodge ads.
In March, The Verge reported that 2 million users were dodging ads with certain blocking apps and accounts. But Spotify has been disabling accounts for abnormal activity long before then.
Torrentfreak reported: “Spotify informs users of modified apps that they’re on the company’s radar and there could be consequences for trying to subvert the system.”
Spotify warned users of possible of suspension and termination early last year and given an opportunity to reactivate their accounts after uninstalling the ad-blockers. Now it’s making good on those claims.
The new Terms of Service kick off March 1 giving Spotify the authority to terminate accounts without warning.
What does this mean for artists and labels?
If Spotify stop the use of ad blocking software across the platform, artists and labels will benefit. From a financial perspective, it means more revenue for Spotify through its advertising partnerships and this in itself has a trickle-down affect.
It will put labels in a stronger position when negotiating their deals, which ultimately means more money for artists.