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Spotify introduced a new mobile version of its free music service Tuesday and tweaked a major competitor along the way.

The expanded offering is being rolled out ahead of YouTube's new subscription music product. Google-owned YouTube is aiming to persuade some of its 1.5 billion monthly users to upgrade to a paid version. Spotify already operates the largest paid music service in the world, and is expanding what it offers for free to reach a target of 1 billion users.

Users of Spotify's free mobile app will be able to access many features of the company's paid service, including some playlists on demand, executives said Tuesday at an event in New York. The changes may also help the company keep its lead over Apple Music, the second-largest paid subscription service.

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