Sony Music Pacts With Spotify In the U.S.
January 20, 2011 at 3:18 PM (PT)
SONY MUSIC ENTERTAINMENT has signed a deal with British online service SPOTIFY for distribution in the U.S., reports the NEW YORK TIMES. SONY is the first major label group to sign for American distribution of the cloud-based service, which streams music and has a smartphone app.
SPOTIFY has been quite popular, if not yet financially lucrative, in EUROPE, where it claims to have at least 10 million users -- 750,000 paid subscribers and the rest using the free, ad-supported version. The company also reported it lost about $27 million in 2009.
Making SPOTIFY’s negotiations with the label groups in the U.S. more difficult is the fact that GOOGLE and APPLE are also in discussions with the labels for new so-called cloud services of their own, in which users store their music not on their own machines but on remote servers that can be reached online.