Report: EMI To Sign Off On Spotify
February 2, 2011 at 3:01 PM (PT)
EMI is about to become the second major label group to close a deal with SPOTIFY, the L.A. TIMES reports. Two weeks ago, the SWEDISH cloud-based music subscription service came to terms with SONY MUSIC (NET NEWS, 1/20).
SPOTIFY offers a free ad-supported service and a premium version that costs 10 Euros a month in EUROPE. CEO DANIEL EK announced at SOUTH BY SOUTHWEST conference in AUSTIN last MARCH that the company was close to introducing its service in the U.S. However, getting U.S. labels onboard has been anything but easy because the labels have been unimpressed with the ad revenue for the free version, as well as the small number of SPOTIFY users -- just 7.5% of its clientele, who use the pay service.
The labels have been pressing SPOTIFY to find more effective ways to increase the percentage of premium service users to the neighborhood of 15%. It's unclear what SPOTIFY has done to satisfy EMI's demands, and the deal could come unhinged at the last minute, sources cautioned.