Spotify, Popular European Music Service, Under Pressure To Launch in the U.S.

Copyright November 23rd, 2010


Swedish online music streaming start-up Spotify is under pressure to launch in the  United States, according to the Financial Times:

People familiar with the negotiations said that after more than a year’s delay, Spotify was considering launching in the U.S. with music from just two or three of the four big labels — Universal, Sony, Warner and EMI — a move that could diminish its appeal

Spotify is available as an online music streaming service in Finland, France, the Netherlands, Norway, Spain, Sweden and the United Kingdom. The service currently has seven million subscribers.

Though those markets are relatively small, the music service has garnered both rave reviews from the likes of Facebook Founder Mark Zuckerberg and investments from big-name investors, including Napster creator Sean Fanning and Hong Kong billionaire and shipping magnate Li Ka-Shing.

But Google is working on its own online music locker service, and Facebook recently hired away Spotify’s chief designer, suggesting that the Spotify has a limited window of time in which to successfully launch in the United States.

Spotify recently revealed that it’s losing money, and is spending a lot on licensing fees.

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