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Spotify US launch hits snags

STOCKHOLM, SWEDEN: Music streaming service Spotify has been hit with more delays as it attempts to enter the US market.

Spotify's negotiations with US record labels have reportedly broken down, according to music industry bible, Billboard. The Swedish music services is still aiming for a 2010/early 2011 US launch, but with record labels like Warner Bros going public about their dislike of the "freemium" business model, it appears likely that negotiations could take much longer, assuming they are successful at all.

Spotify CEO Daniel Ek recently announced that he projected a Q3 US launch and he also unveiled several new mobile applications for the service. It appears that while Spotify's social media interactions and usability are getting better and better, its US launch program is in retreat.

Elements provide for sources of contention

Spotify users can listen to unlimited streaming music that is interrupted with advertising. Different levels of subscription allow listeners to pay for ad-free streaming and access to the service on different mobile platforms. Users can also configure playlists to be accessed offline.

Elements of this model have been sources of contention for the major record labels stateside, notably Warner Music Group, according to Billboard.

Time is against Spotify. Despite its popularity in Europe, competitor streaming services are establishing themselves. Pandora has managed to avoid the objections of the major labels and still turn a profit, and reports have suggested that Google and Apple are both working on streaming music platforms.

Spotify in one of the Cream 100 list of innovative companies, and is included in the Cream book No Apples, 100 Other Top Innovators.


Cream is a curated, global case study gallery of excellence, providing the marketing community with the latest trends and inspiration to help grow their business.

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