Los Angeles – European streaming music service Spotify has
finally signed a licensing deal for the U.S. with a major record label, Sony (NYSE: SNE)
Music, All Things D reported, citing sources. The company had intended to
launch in the U.S. last year, but difficult licensing negotiations with the
majors delayed its plans.
Media reports indicated the labels are uncomfortable
with Spotify’s ad-suppported, free streaming option, and were seeking large
upfront payments.
The terms of Spotify’s deal with Sony would reportedly enable
a service closely mirroring the one it offers in Europe, with a free streaming
tier complemented by a subscription tier.
Both All Things D and CNET speculated
that Spotify would need to sign a deal with Universal Music — the largest of
the four majors — before it could launch in the U.S.
Such a deal would also
put pressure on EMI and Warner Music (NYSE: WMG) to follow suit.
Related Links:
http://tinyurl.com/48o8nef
(All Things D)
http://news.cnet.com/8301-31001_3-20029033-261.html
