I think it's dumb in the first place that you can't use Spotify freely on a phone/tablet device without the Premium subscription. If I can use it for free on my PC with ads, then I should be able to do it on my iPod Touch. It's an arbitrary restriction.
Just keep the ads for all platforms so it's free, and make Premium an incentive to get rid of the ads, the same way Pandora does it.
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