The agreement with the IODA, which acts on behalf of independent labels and artists hammering out marketing and distribution deals, means Spotify users can now listen to artists such as The Prodigy and Bob Marley.
Spotify allows users to create a playlist of song and listen to the tracks on the playlist for free, although they are peppered with adverts just like commercial radio. However, for 99p, users can purchase a whole day of ad-free listening time, or alternatively pay a £10 monthly subscription and never hear an advert again.
The service also offers the ability to create 'collaborative' playlists, which are assigned their own web addresses, and can then be added to by other Spotify listeners.
Spotify's Andres Sehr said: "One of the challenges all music services face is providing a wide range of music for users with all sorts of different tastes. IODA will provide Spotify users with music drawn from a catalogue of nearly two million tracks from over 50 countries and spanning a broad variety of styles including rock, electronic, hip-hop, metal, punk, indie, world, latin, jazz and classical".
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See also: Microsoft to launch Spotify rival