Spotify has started allowing labels to place songs in user playlists

Spotify has been experimenting with a new system as part of its streaming service that allows labels to pay to include tracks from their artists on user playlists.

The current proposal is that the sponsored songs would only appear on Spotify’s free platform – paying subscribers are not included in the trial. Also, if your account is affected by the advertising then you are able to opt out via your settings.

Even though Spotify has over 140 million active users, the company has been operating at a loss and is thus looking to widen its revenue streams. It has been rumoured that the Swedish business is looking to float itself on the stock market in an effort to gain more capital.

"We are always testing new promotional tools that deliver the highest relevancy to our users," Spotify said in a statement reported by the BBC.