Update on Spotify

Posted on | December 9, 2010 | No Comments

I feel like every few weeks you hear news in passing about Spotify. In a lot of cases it’s uninformed hearsay or flat out assumptions. However, this just in from Daniel Ek (CEO/founder), “I won’t commit to a specific date [for Spotify to launch in the U.S.].”

Negotiating the terms and upfront costs associated with adding the labels’ music is laborious. There’s no denying that, but these intense negotiations only make it appear to the consumer that the labels are the bad guys and they don’t understand the value of a service such as Spotify. As Ek stated, “Most people in the world do not pay for music today,” and went on to say, “the music industry should be worth a lot more.”

Will Spotify make the labels as much money as before? I’m willing to bet that it won’t. However, that’s why labels have 360s. They want a piece of touring, merch, licensing, endorsement deals, and whatever new revenue stream that might pop up in the future. Furthermore, I truly believe that Spotify won’t hurt the amount of money their currently making from physical and digital sales. In fact, I bet it might help. But only time will tell. Lets hope for Spotify in the U.S. by beginning of Q2 in 2011 and see what happens.

Update on Spotify

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