diff --git a/MANIFEST.in b/MANIFEST.in
index 8a73b481..38819adb 100644
--- a/MANIFEST.in
+++ b/MANIFEST.in
@@ -1,4 +1,5 @@
 include LICENSE pylintrc *.rst *.txt
+include mopidy/backends/libspotify/spotify_appkey.key
 recursive-include docs *
 prune docs/_build
 recursive-include tests *.py
diff --git a/docs/changes.rst b/docs/changes.rst
index 7b154915..c20b2ad1 100644
--- a/docs/changes.rst
+++ b/docs/changes.rst
@@ -23,6 +23,8 @@ Another great release.
 - Remove :mod:`mopidy.backends.despotify`, as Despotify is little maintained
   and the Libspotify backend is working much better.
 - :mod:`mopidy.backends.libspotify` is now the default backend.
+- A Spotify application key is now bundled with the source. The
+  ``SPOTIFY_LIB_APPKEY`` setting is thus removed.
 - MPD frontend:
 
   - Relocate from :mod:`mopidy.mpd` to :mod:`mopidy.frontends.mpd`.
diff --git a/mopidy/backends/libspotify/session_manager.py b/mopidy/backends/libspotify/session_manager.py
index 2de6ae63..707423aa 100644
--- a/mopidy/backends/libspotify/session_manager.py
+++ b/mopidy/backends/libspotify/session_manager.py
@@ -13,7 +13,7 @@ logger = logging.getLogger('mopidy.backends.libspotify.session_manager')
 class LibspotifySessionManager(SpotifySessionManager, threading.Thread):
     cache_location = os.path.expanduser(settings.SPOTIFY_LIB_CACHE)
     settings_location = os.path.expanduser(settings.SPOTIFY_LIB_CACHE)
-    appkey_file = os.path.expanduser(settings.SPOTIFY_LIB_APPKEY)
+    appkey_file = os.path.join(os.path.dirname(__file__), 'spotify_appkey.key')
     user_agent = 'Mopidy %s' % get_version()
 
     def __init__(self, username, password, core_queue, output_queue):
diff --git a/mopidy/backends/libspotify/spotify_appkey.key b/mopidy/backends/libspotify/spotify_appkey.key
new file mode 100644
index 00000000..1f840b96
Binary files /dev/null and b/mopidy/backends/libspotify/spotify_appkey.key differ
diff --git a/mopidy/settings.py b/mopidy/settings.py
index 949b2e06..b17af913 100644
--- a/mopidy/settings.py
+++ b/mopidy/settings.py
@@ -160,11 +160,6 @@ MPD_SERVER_HOSTNAME = u'127.0.0.1'
 #: Default: 6600
 MPD_SERVER_PORT = 6600
 
-#: Path to your libspotify application key.
-#:
-#: Used by :mod:`mopidy.backends.libspotify`.
-SPOTIFY_LIB_APPKEY = u'~/.mopidy/spotify_appkey.key'
-
 #: Path to the libspotify cache.
 #:
 #: Used by :mod:`mopidy.backends.libspotify`.
diff --git a/setup.py b/setup.py
index 76c38e4b..fabc8353 100644
--- a/setup.py
+++ b/setup.py
@@ -75,6 +75,7 @@ setup(
     author='Stein Magnus Jodal',
     author_email='stein.magnus@jodal.no',
     packages=packages,
+    package_data={'mopidy': ['backends/libspotify/spotify_appkey.key']},
     cmdclass=cmdclasses,
     data_files=data_files,
     scripts=['bin/mopidy'],