Spotify is experimenting with a new ad unit called Sponsored Songs

The logo of the music streaming service Spotify is displayed

- Spotify users have noticed a new opt-out setting appearing both on desktop and in-app: Sponsored Songs.

With Spotify's 2016 financials out in the open as of last week and showing increasingly heavy losses, Spotify is no doubt looking at every avenue it can to increase ad revenue, and it seems that the latest of these are "Sponsored Songs". For a fee, the feature allows music labels to promote their songs by making them appear on users' playlists. Although the company said that it's now testing out the feature only in the freemium tier, paid users have discovered sponsored content in their playlists.

The idea behind the Sponsored Songs feature is that Spotify can make more money from labels that want to get their artists' songs out there. However, a couple users have claimed online to be premium subscribers who are getting the sponsored songs.

Spotify says that if the test is successful, Sponsored Songs could roll out officially as a real feature. Simply go to Settings Sponsored Content and swipe the toggle off. These can be targeted to appear to users with matching listening tastes so they fit alongside their other music. Ideally, users will hear the song and save it to their library.

Spotify's experiment will effect those who use its free tier.

While some of the online community has shown skepticism about how it will effect their listening experience, the company has set up the new option to effect free users only, and not their 50 million paying subscribers. It could count number of listens, shares or impressions, as pointed out by Complex.

For labels, Spotify's Sponsored Songs should be a new way for them to promote new songs and artists. The option is listed as "show sponsored songs" and it is turned on by default.

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