Yes, there is a notable difference in that for the free version, you have to contend with repeated interruptions from the ads, while the premium option has no ads whatsoever. Furthermore, if you are a free subscriber, then you know you do not enjoy all content on Spotify, premium subscribers enjoy a whole lot more, they have unlimited content access. In addition to this, free Spotify users have no music download option on their menu until when they upgrade to the premium.