Swedish internet radio service Spotify has demonstrated a mobile app that allows the service to be used on mobile phones. The company chose a handset running Google's open-source platform Android to demonstrate the app.

The music streaming service lets users create a playlist of songs for free, although it is peppered with adverts just like commercial radio.

However, for 99p, Spotify 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 allows users to create 'collaborative' playlists, which are assigned their own web addresses, and can then be added to by other Spotify listeners.

The web has been rife with rumours for some time that a mobile app was next on Spotify's list, and now the music streaming service has confirmed it plans to bring Spotify to mobile phones.

The app allows users to cache tracks they want to listen to so they can be heard when the device is offline as well as a sync function that works with the desktop version of the music-streaming service so you can access playlists you've already created.

Spotify didn't release details of when the finished app will be made publicly available.

The music service recently announced a partnership with 7Digital that allows users to purchase any track in a 320kbps MP3 format from 7Digital by simply clicking a link while its being broadcast.