The popular music service Spotify is said to be planning a launch of a new free ad-supported version of their service. Spotify has called a press event for Wednesday morning in New York where Adage says the company will announce the new ad-based model. Current Spotify users can use their ad supported webapp or a $9.99 version for mobile. Bringing the ad supported model to mobile will hopefully spike their mobile usership and convert computer only users to the smaller screen.

Spotify has recently revamped deals with the major record labels that has given the Swedish company the opportunity to expand it’s offerings and develop more features. The music space is heating up with the new iTunes Radio entry from Apple, and a new YouTube music service not to mention the relaunch of Google’s music product.

Adage reports that the new ad supported model on mobile devices will allow users to choose 15 songs at a time that can play on their mobile playlist. Spotify will put ads between the songs and they will only be available for a limited amount of plays. After the maximum plays for each song are reached the user will have to refresh their play list, or of course they can opt for the $9.99 version which allows them free reign of the Spotify catalog and the ability to save songs locally so they can avoid large streaming bills from their wireless provider.

Spotify says they have 24 million active users and over 6 million paying subscribers.