SHARE
COPY LINK

DATA

Norway watchdog slams Spotify privacy rules

The Norwegian Data Protection Authority (NDPA) has sharply criticised the intrusive new terms of use brought in by the music streaming service Spotify, describing them as “a new level on the collection of personal data”.

Norway watchdog slams Spotify privacy rules
Spotify founder Daniel Ek said he was "sorry" the policy had been misunderstood. Photo: Spotify
Spotify was on Friday forced to backtrack on the new privacy policy, released on Wednesday, in the face of a user rebellion. 
 
The policy, which requests access to users’ pictures, contacts and GPS data, had triggered outrage, with some high profile users – such Markus “Notch” Persson, the creator of Minecraft, declaring that they would cancel their subscriptions. 
 
Atle Årnes, the NDPA’s technology director said that the vague wording of Spotify’s statement was particularly irksome. 
 
“One should notice especially the part of the text where they use the word “may”, which means that they will perhaps do this or that. That’s a type of word which we think badly of at the Data Protection Authority, because it brings so much uncertainty. Do it, or don’t do it.” 
 
Spotify founder Daniel Ek on Friday posted a blog post titled “sorry”, in which he complained that there was “a lot of confusion” over the company’s new privacy policies. 
 
“We should have done a better job in communicating what these policies mean and how any information you choose to share will – and will not – be used.” 
 
He went on to stress that Spotify would only access photos,  contacts, voice control, or GPS location in order to provide new Spotify services, and only ever with its users’ permission. 
 
“As a consumer, I’ve always loved your service. You’re the reason I stopped pirating music. Please consider not being evil,” ‘Notch’ wrote in his tweet announcing his decision to cancel his subscription. 
 
The Swedish group claims to have more than 75 million users in 58, more than 20 million of whom use its premium paying site, but is now facing stiff competition from Apple, which launched Apple Music on June 30. 
 

BUSINESS

Spotify reports strong growth in users as it announces price rise

Spotify on Tuesday reported a bigger-than-expected rise in active users at the end of the second quarter, a day after the music streaming giant announced price increases for its premium service.

Spotify reports strong growth in users as it announces price rise

The Swedish company, which is listed on the New York stock exchange, said it’s total active users rose 27 percent to 551 million year-on-year, or 21 million more than it expected. The number of paying subscribers also rose, with a 17 percent jump to 220 million — three million more than expected.

On Monday, the company announced it was raising its prices for premium subscribers “across a number of markets around the world,” following in the footsteps of similar moves by competing music services from Apple and Amazon.

Despite the boost in users, Spotify reported a bigger operating loss of 247 million euros ($273 million) in the second quarter, compared to a loss of 194 million euros for the same period a year earlier.

The company said it was “primarily impacted by charges related to our actions to streamline operations and reduce costs.”

In early June, Spotify announced it would be cutting some 200 positions working with podcasts.

That move came after a January announcement that Spotify was cutting around 600 jobs — equalling about six percent of its workforce — following similar moves by other tech industry giants.

Spotify has invested heavily since its launch to fuel growth with expansions into new markets and, in later years, exclusive content such as
podcasts. It has invested over a billion dollars into podcasts alone.

In 2017, the company had around 3,000 staff members, more than tripling the figure to around 9,800 at the end on 2022.

The company has never posted a full-year net profit and only occasionally quarterly profits despite its success in the online music market.

SHOW COMMENTS