Just six months a ago Spotiify launched with great fanfare in the U.S. Hundreds of thousands signed up to enjoy unlimited free music. An integration with Facebook brought even higher numbers. But the free music party is about to crash and the warning light is right inside Spotify's terms of service:
The Spotify Service can be accessed (i) as an ad-supported free-to-the-user service having no monthly cap on listening hours or a cap on number of plays of a unique track during the first 6 months following creation of your Spotify account but thereafter a cap of 10 listening hours per month and a cap of 5 plays per unique track (the “Free Service”)
The big question for Spotify is how many will convert or a $5 or $10 per month paid subscriptions. Will they put up with the 10 hour per month limits? Or will they just shift to anther free music services like MOG, Rdio or even Pandora?
The answers to these questions, will go a long way towards determining Spotify's future.