Report: Spotify Set To Launch In The U.S. Next Week
July 8, 2011 at 4:27 PM (PT)
SPOTIFY is finally making its appearance in the U.S. The WALL STREET JOURNAL reports that the music-streaming service, previously only available in EUROPE, will launch Stateside as early as the middle of next week.
While popular in EUROPE, SPOTIFY's advertising-sales revenues have not been large enough to support its unlimited free music service, so it recently set a limit of 10 hours per month of free music. After that, people must pay to use the service, either on their computers or on mobile phones.
SPOTIFY had agreements with three of the four major label groups that enabled it to offer their catalog; the lone holdout, WARNER MUSIC GROUP, is rumored to be signing off on it by early next week. Sources in the music industry note that if SPOTIFY and WARNER don't reach a deal, the launch could be delayed.
Users who subscribe to SPOTIFY's Premium service in the U.K. pay around $16 a month for an unlimited amount of music, without advertising, on a computer or cellphone. SPOTIFY Unlimited costs around $8 a month to play tracks through a computer, with no time limit. SPOTIFY hasn't disclosed specifics on how a U.S. service would work, but people in the music industry expect it to be similar to the way it now works in EUROPE.
In MARCH, SPOTIFY said it had 10 million users total in EUROPE, but only one million of them pay for the premium services.