Apple Trying to Torpedo Spotify's U.S. Launch?

[MacRumors]

CNET reports that popular Swedish music streaming service Spotify, which is struggling to line up deals to allow it to launch its free service in the United States, is being targeted by Apple in an attempt to keep music labels from signing on with Spotify. Apple is reportedly arguing to the labels that Spotify's free service would undermine the existing digital music business in the U.S., an industry that is dominated by Apple's iTunes Store.

In meetings in Los Angeles recently, Apple executives told their music industry counterparts that they had serious doubts about whether Spotify's business model could ever generate significant revenues or profits, according to two sources with knowledge of the discussions.

But Apple executives worried about the effects of a free music service might have on the rest of the market. They noted that it's tough to sell something that someone else is giving away, the sources said. One industry insider said it is only logical that if Spotify were allowed to launch a free-music service here, at a time when Nielsen recently reported that the growth of digital sales has flattened out, it could eat into the businesses of proven revenue-producers like Apple and Amazon.

Spotify has already missed two target dates for launching its service in the U.S., and reportedly has yet to reach agreements with any major U.S. labels as it seeks to meet yet another launch target set for the end of the year.

Spotify is only available in seven European countries at the moment, including the UK, France, and Spain, but its expansion to the U.S. has been highly-anticipated for quite some time. The company released an iPhone application last year to allow users to stream music via Wi-Fi or 3G, although the application is obviously only available in countries where the service is offered.

Article Link: Apple Trying to Torpedo Spotify's U.S. Launch?

 

[noservice2001]

go apple!

 

[dolphin842]

I've been keeping an eye on Spotify for a long time. It's a shame if part of that delay is due to lobbying by Apple.

 

[JoEw]

artists don't really make money with digital downloads anyway....
the record companys keep most of it.

Honestly i don't see why music labels would want a service like spotify.
But i love grooveshark to bad they don't have label agreements yet.
I'm all for spotify. Gotta understand why apple would not want spotify to be released in the U.S. People would sign up for spotify instantly.

 

[rudigern]

Although free is always good I find it hard to believe any US music label would sign into it due to their greed. But this pisses me off too, these things never come to Australia.

 

[184550]

Not good IMO.

I enjoyed using Spotify when I was in London.

 

[Hastings101]

Aww how cute, Apple is trying to be like the Microsoft of the digital music world.

 

[slu]

This is lame. Shutting down Lala was one thing. Actively trying to scare the labels to stifle competition is something else.

 

[BrianKonarsMac]

go apple!

You prefer less options?

 

[goobot]

So they make their money threw ads or what?

 

[Fuchal]

I don't see how this is a "Go Apple!" situation in any possible way.

 

[japasneezemonk]

This sucks, but it makes sense Apple would want to protect their business.

 

[ChazUK]

My wife loves Spotify and I doubt she'd ever give it up.
At least give the service a chance.

 

[ppc_michael]

That's a pity. I'm just glad Grooveshark is still around. I have purchased so many CDs after discovering artists on that site.

 

[donlphi]

I've said it once, and I'll say it again. You keep trying to give music away for free, and we're going to lose a lot of future music geniuses. Nobody works for free.

 

[BlueRevolution]

The iTunes Store seems to do fine in Europe despite Spotify's presence…

artists don't really make money with digital downloads anyway....
the record companys keep most all of it.

Fixed that for you. On a typical $15 album sold in a brick-and-mortar store, less than 50¢ goes to the musicians. So who's exploiting the musicians: pirates who attend concerts, or the other $14.50?

 

[Hastings101]

I've said it once, and I'll say it again. You keep trying to give music away for free, and we're going to lose a lot of future music geniuses. Nobody works for free.

I assume it's ad-supported, so you still have income coming in to pay the artists?

 

[Bafflefish]

Nobody works for free.

Habitat for Humanity? Doctors Without Borders? Engineers Without Borders?

 

[ChazUK]

I assume it's ad-supported, so you still have income coming in to pay the artists?

Yes, the free version is ad supported.

My wife liked the free service so much that she now subscribes fir £10 a month and she now gets to play all her Spotify playlists on her phone which also work without any data usage as it downloads the songs to your device for "offline playback".

The free service does lead to subscribers too so there is another possible revenue stream there.

 

[Cougarcat]

This sucks, but it makes sense Apple would want to protect their business.

As long as there is an iOS app, which there is, I think it would help their business. Apple doesn't really make any money from the store.

 

[NT1440]

Habitat for Humanity? Doctors Without Borders? Engineers Without Borders?

He means no one not self centered works for free.

You know, no one actually likes making music, it only gets made because certain people can get rich doing it.

 

[suss2it]

Apple doesn't really make any money from the store.

What makes you think that?

 

[NT1440]

What makes you think that?

Their quarterly earning reports that note that the service doesn't really generate a ton of money compared to hardware sales for them.

 

[aeronauticsrock]

Even here in the US, I happily pay $17 a month for Spotify Premium. Absolutely fantastic service.

Anyone who thinks we shouldnt have another music service (e.g "Go Apple!")....whats the matter with you.

 

[suss2it]

Their quarterly earning reports that note that the service doesn't really generate a ton of money compared to hardware sales for them.

Didn't know that, but I'm sure they'd still rather there weren't any competition with the iTunes store.