Spotify Making Progress on Deals With U.S. Music Labels

[MacRumors]

CNET reports that Swedish music streaming service Spotify appears to be getting closer to locking in deals with the major U.S. record labels that would allow the company to launch its free and paid services in the United States. Just yesterday, a rumor surfaced claiming that Apple was in early-stage negotiations with Spotify about an acquisition, but the claim was quickly denied by Spotify representatives.

Spotify is still without signed contracts to license music from any top label and there are still numerous points to be negotiated, but the company has never been closer to finalizing deals than now, said multiple sources with knowledge of the talks.

One of the ways that Spotify has stirred the labels is by offering big advanced money, the sources said. The amount could not be verified.

Spotify is also said to still be looking for ways to entice more users of its free service to upgrade to its paid premium service offering no ads, better music quality, and other features. The conversion rate is said to be below 10%, with record labels hoping to see that rate closer to 15%.

Spotify has already missed several U.S. launch date goals as it has struggled to convince labels that have seen many music startups fail to buy into its strategy. The company is currently racing to meet its latest goal of a U.S. launch by the end of 2010. Spotify has also reportedly had to deal with Apple's own efforts to torpedo the U.S. deals by arguing that the service would be a losing proposition for all sides of the digital music industry.

Article Link: Spotify Making Progress on Deals With U.S. Music Labels

 

[dmmcintyre3]

Until they do, I'll keep using my UK based proxy.

 

[kernkraft]

Cleveland Brown's words come to my mind - No, no, no, no, no, no!


Sorry, false alarm! I just saw 'Apple' and 'Spotify' in the same news and I started to panic.


Phew! That was close!

 

[NinjaHERO]

Competition is always good. At least I hope so.

 

[OllyW]

Competition is always good. At least I hope so.

I don't see it as competition, I find it compliments iTunes.

I listen to new albums and new bands on Spotify and buy the music from iTunes (or Amazon ) if I like it.

 

[Number 41]

Competition is always good. At least I hope so.

How many drinks is the mindless "Competition is always good" post worth in the MacRumors drinking game? I've lost count.

Competition is not always good. I know I, for one, would hate to see the industry pushed towards subscription-based services.

 

[antster94]

To be honest I wouldn't want to see Apple take them over. I use Spotify Premium daily and it's a service that I wouldn't want to change in any way.

 

[fowler.]

what's the difference between spotify and rdio.com? seems like the same kind of service, yeah?

 

[57004]

I'm a paying customer already but would have been one much sooner if they would finally build a real iPad app. The current iPhone offering is crap on the iPad.

 

[Mochi Hana]

This is really good news. I've always wanted to try Spotify.

 

[Dr McKay]

I can see why Apple have been shooting down the launch, after subscribing to Spotify Premium, iTunes now only functions as my iPhone & iPad Updating/Syncing device.

 

[AAPLaday]

I can see why Apple have been shooting down the launch, after subscribing to Spotify Premium, iTunes now only functions as my iPhone & iPad Updating/Syncing device.

Thats the way its going for me too. Plus its faster than iTunes for me

 

[orta]

count me as another Spotify replaced itunes/ipod guy

 

[TennisandMusic]

How many drinks is the mindless "Competition is always good" post worth in the MacRumors drinking game? I've lost count.

Competition is not always good. I know I, for one, would hate to see the industry pushed towards subscription-based services.

Care to explain why? Zune pass is completely awesome.

 

[ppc_michael]

Grooveshark ftw.

 

[vladi]

I don't even know whats the big deal about Spotify when you have Grooveshark.

 

[aegisdesign]

I don't even know whats the big deal about Spotify when you have Grooveshark.

Until Grooveshark get their Premium service going, it's lower quality and no mobile support. Grooveshark's website is better IME than Spotify's client software provided you're not an Airfoil user.

 

[cocky jeremy]

Until Grooveshark get their Premium service going, it's lower quality and no mobile support. Grooveshark's website is better IME than Spotify's client software provided you're not an Airfoil user.

Their premium services and mobile software is up and running perfectly fine. Has been for a long time. Hell, do they specials sometimes where you buy an $18 shirt and get a year of VIP along with it. $18 for a shirt + a year of mobile Grooveshark seems well worth it to me. (Which is why i purchased it)

 

[Daveoc64]

I don't even know whats the big deal about Spotify when you have Grooveshark.

Last time I checked, Grooveshark isn't 100% legal.

 

[vladi]

Last time I checked, Grooveshark isn't 100% legal.

Ahhh thousands of shades of gray Well that's their problem and only thing that matters to you as a user is that you will not be prosecuted for listening to their streams. Just be careful what you upload if you do so.

 

[rans0m00]

Had to use a UK proxy but downloaded it and streaming to my computer.... Will be looking forward to getting it legit in America.... Can understand why Apple would not want it here though.

 

[roadbloc]

I don't see it as competition, I find it compliments iTunes.

I listen to new albums and new bands on Spotify and buy the music from iTunes (or Amazon ) if I like it.

This is exactly what I do.

 

[Daveoc64]

Ahhh thousands of shades of gray Well that's their problem and only thing that matters to you as a user is that you will not be prosecuted for listening to their streams. Just be careful what you upload if you do so.

What's the point in paying if you aren't actually get anything in return for your money?

Might as well cut out the middle man and just get it from bit torrent.

 

[vladi]

What's the point in paying if you aren't actually get anything in return for your money?

Might as well cut out the middle man and just get it from bit torrent.

Why would you pay? Its free.

 

[garybUK]

What's the point in paying if you aren't actually get anything in return for your money?

Might as well cut out the middle man and just get it from bit torrent.

That's stupid.... why rent a house? may as well cut out the middle man and sleep on the streets? why pay for digital satellite tv? may as well cut out the middle man and read a book.