Is Spotify Coming to America?

Music streaming service Spotify has a strong following in Europe and is planning to launch in the United States by the end of the year, if they can make a deal with the major record labels. Negotiations are ongoing, but no agreement has yet to be made. Spotify is a free music streaming service that generates income via advertising. A paid premium service is also available that let’s users enjoy music without advertising, and have access to the iPhone app.

Although a US launch is greatly anticipated, record labels have doubts that Spotify will ever generate significant profits. Apple is also said to be talking with record labels, arguing that Spotify’s free music service would significantly hurt download music sales. Apple’s position is that it’s hard to sell something others are giving away for free. With the decline of music sales worldwide, Apple wants to maintain its position as market leader.

Free music services like Spotify have had difficulties getting licensing deals in the past. Recently, Apple removed the Gooveshark music-streaming app from the App Store after receiving a complaint from the Universal Music Group. Fortunately, Gooveshark is still available online, but it will be some time before iPhone users can access the site.

With Apple deeply entrenched and Google gearing up to launch it’s own music service, there seems to be little hope that Spotify will ever launch in the US. I hope Spotify is able to secure the licensing deals needed to launch in the coming months. I would love to start the New Year listening to music for free on my iPhone with Spotify.

Source : Cnet