Spotify Set To Announce Deal With EMI; New Financing?
February 21, 2011 at 4:27 AM (PT)
PETER KAFKA writes in ALL THINGS DIGITAL that, "SPOTIFY has finalized a U.S. distribution deal with EMI MUSIC, multiple sources tell me."
SPOTIFY is the European music service that plans on becoming yet another iTUNES competitor worldwide.
With EMI joining SONY, SPOTIFY is halfway home -- with UNIVERSAL MUSIC GROUP and WARNER MUSIC GROUP still yet to agree to a deal with the service.
"If and/or when SPOTIFY does come to the U.S.," notes KAFKA, "it will also have to contend with new rules from APPLE, which will require a 30% cut of any subscriptions the service sells through APPLE's iTUNES platform. That tariff is going to be a significant problem for many of SPOTIFY's peers, who are working on slim margins to begin with."
Spotify To Receive Russian Financing?
VENTUREBEAT.COM reports SPOTIFY "is raising a big round of financing from RUSSIA's DST, the investment company company that has backed FACEBOOK, GROUPON and ZYNGA.
The proposal values the yet-to-be-launched in the U.S. company at about $1 billion.