Music streaming service Spotify has apologised to users over the introduction of a controversial new privacy policy that has caused consternation among data protection advocates.

Company founder and chief executive Daniel Elk admitted in a blog post on Friday that Spotify should have done a better job in communicating the impact the new policy would have and on how information gathered might be used.

“We have heard your concerns loud and clear,” said Mr Elk.

Spotify outraged users when it said it would be free to access information such as photos, location data and contact details from customers that agreed to its new policy and terms and conditions.

“With your permission, we may collect information stored on your mobile device, such as contacts, photos, or media files. Local law may require that you seek the consent of your contacts to provide their personal information to Spotify, which may use that information for the purposes specified in this privacy policy,” it said.

In his blog post, Mr Elk apologised to Spotify users of its service saying the company was “100 per cent committed to protecting our users’ privacy and ensuring that you have control over the information you share.”

“In our new privacy policy, we indicated that we may ask your permission to access new types of information, including photos, mobile device location, voice controls, and your contacts. Let me be crystal clear here: If you don’t want to share this kind of information, you don’t have to. We will ask for your express permission before accessing any of this data - and we will only use it for specific purposes that will allow you to customise your Spotify experience,” he said.

Mr Elk outlined a number of ways in which the company might use data gathered, such as using a subscriber’s photos to create personalised cover art or utilising location-based data to keep users updated on music trending in their region.

He added that while the updated privacy policy also mentions sharing information with advertisers, rights holders and mobile networks, this was nothing new. He stressed that any data obtained and shared with third parties would not be linked to any individual.

The backlash comes at the worst possible time for Spotify, which is facing increased competition following the launch of Apple Music in June.

Spotify said recently it now had over 20 million subscribers and more than 75 million active users.

The unlisted Swedish company grew revenues by 45 per cent to more than €1 billion and posted an operating loss of €165 million in 2014.