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So, maybe the free UK version of Spotify provides no reason to upgrade. But I can tell you that the Swedish version is getting on a lot of people's nerves. And many of those people are seriously thinking to upgrade.

- First, there are plenty of commercial ads, the stuff that used to run on the radios years ago. Cheesy.

- Second, they fill up ad inventory with non-profits ads. So for example the ad about safe sex that goes something like: "everyone loves music, especially in the bedroom".

- Then they have ads from artists promoting their albums and telling you that if you upgrade, you get the single 1 week early.

- Also, you have ads urging people to call in and leave a fans voice mail.

- And finally Spotify plays the voice messages from people to tell you how much they like it and how much they love the premium version.

In summary, Spotify is clearly playing a carrots & stick game to get people to subscribe - the carrot being the social networking features they want to launch, the ability to create playlists, etc.

And I can clearly imagine how the company is bringing the stick strategy to the UK soon.



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