Spotify is trying to improve the connection between artists and labels and the listening public by injecting a little extra social networking magic: An embeddable website "follow" button. It's similar to Twitter, and a bit like Facebook's "like."
The idea is that anyone with an interest in promoting their music via Spotify online can embed the follow button on their site. Spotify users can then click on the button and via some background code they'll be signed up to future updates from the artist in question. That means when there's a new track or album available, the fan will be automatically alerted. It's not a spectacularly big move, by any measure, but it should certainly improve communication between Spotify artists and their fans, and it should raise awareness of the Spotify brand itself—if you see the button as a tiny little branded ad.
But can Spotify continue to innovate and keep itself relevant among what's becoming a fierce battle in streaming music? The company has long had a follow mechanism built into its service and it may be expanding follows to brands too, as a way to raise advertising revenue. Separately the company recently announced its "Connect" service that streams music wirelessly to special compatible speakers.