San Francisco – Spotify, the European streaming music
service that is in talks with the major record labels in preparation to launch
in the U.S., is facing obstacles that include Apple (NASD: AAPL) executives actively
discouraging the labels from backing its business model, CNET News.com
reported, citing music industry sources. Apple executives reportedly told label
executives in recent meetings in Los Angeles they had "serious
doubts" that Spotify’s business model — a main, free service supported by
ads combined with an ad-free, monthly subscription service — "could ever
generate significant revenues or profits," according to CNET’s sources.
The Apple executives also reportedly noted that "it’s tough to sell
something that some else is giving away," pointing to potential declines
in download sales should U.S. consumers embrace Spotify.
Meanwhile, both Apple
and Google (NASD: GOOG) are reported to be working on new music services. Apple is said to
be working on a cloud-based service that would let users store their iTunes
music libraries online and stream them from connected devices.
Less is know
about the particulars of Google’s planned music service, but sources told CNET that
Google may miss a planned launch before year’s end, and opt to launch in the
first quarter of 2011.
Related Links:
http://news.cnet.com/8301-31001_3-20018971-261.html
http://www.spotify.com
Hello! decgeed interesting decgeed site!
I’m an American just moved to London and I love Spotify. The thing I don’t get is why Apple is the one protesting Spotify’s launch state-side. The current company filling that niche is Pandora, so they are the ones with most to loose. Plus, even after listening to Spotify’s ads for about a week I’m ready to break down and buy, either a subscription or single songs. I don’t think anyone likes ads too much.
When 1 million Spotify plays nets the artist $167 you know the model is unsustainable.
http://www.independent.co.uk/arts-entertainment/music/news/spotify-1-million-plays-163108-return-1944051.html
I’m an American just moved to London and I love Spotify. The thing I don’t get is why Apple is the one protesting Spotify’s launch state-side. The current company filling that niche is Pandora, so they are the ones with most to loose. Plus, even after listening to Spotify’s ads for about a week I’m ready to break down and buy, either a subscription or single songs. I don’t think anyone likes ads too much.
Go Spotify, Apple is already a house of cards, that will send it crashing down!
Converted me to a proper paying customer – previously I got my music through p2p for the sheer convenience of it, and railed against the music industry giants for being slow-witted and greedy.
I was never interested in iTunes, first because it perpetuated a business model I’m not very interested in (I want to listen to music, not own it!), and second because the client doesn’t play nicely with my current platforms of choice (Linux on the desktop and Symbian on my phone, though the phone will soon be Android instead).
Spotify is even more convenient than p2p, plays nicely with my current and future platforms, and has most of the music I want to listen to, though I wish it had a slightly better selection of some of the very obscure music I sometimes want to listen to.
Also, at £10 per month, which to me seems pretty good value for what I get, I’m now spending twice the UK yearly average spend on recorded music just through Spotify.
Personally I think any music industry executive who wants to bet on the uncontrollable behemoth that is Apple rather than investing in Spotify needs their head examining.