Through a new 'devices' tool in the Spotify client sidebar, users can now manage their iPod collection via the player (rather than via iTunes), syncing all their downloads.
The updated software will scan a user's digital music collection on their iPod when it is plugged in and import all tracks on it (from their hard drive) into the Spotify player.
Tied into this is a push towards consumers buying MP3s and discounts being offered for multiple track playlist-based purchases with a single-click buying option within the player. Users can buy 10 tracks from £7.99, 15 tracks for £9.99, 40 tracks for £25 and 100 tracks for £50.
To do this, Spotify has built its own download store and struck direct deals with the labels and aggregators. The download option was previously handled by 7digital, but this has now been taken in house.
A Spotify spokesperson told Music Week, "7digital has been a great partner for the past year and a half. However, in order for us to launch a fully-rounded user experience we need to manage the entire process including the download service."
Spotify has placed playlist creation and sharing as a key part of its appeal but much of that activity has taken place through third-party sites such as ShareMyPlaylists. This move now sees the company look to monetise playlists as well as open a new revenue source for users on the free tier.
Previously the Spotify smartphone app could only be activated by Premium users to synch playlists over Wi-Fi but updated Android and iPhone apps will allow all users - including those on the free tier - to purchase MP3 playlists and wirelessly add them to their devices. The hope, clearly, is that all users (free and premium) will come to regard Spotify as their default digital music player rather than something that sits alongside the dominant iTunes player.
Spotify CEO and co-founder Daniel Ek said, "From today, Spotify really is the only music player you'll ever need. Our users don't want to have to switch between music players, but they do want to take their playlists with them wherever they go, on a wider range of devices, more simply and at a price they can afford. Now we've made that possible on one of the world's most popular consumer devices."
This comes as Spotify cuts back the number of hours users on its free tier can access to 10 a month and as it gears up to launch in the US.
Spotify recently announced it has over 1m paying subscribers across seven European markets - equal to 15% of its active user base.