Just a week ago, we covered a New York Post story indicating that Spotify, the ad-supported or subscription based all-you-can-eat music streaming service, was about to sign a deal with Sony Music in the U.S. — taking Spotify a step closer to the U.S. market.
Now, according to MediaMemo, that deal has now gone through. Though both Spotify and Sony have declined to comment, it’s reported that a deal — similar in terms to Spotify’s European music label deals — has been reached.
However, Spotify still needs to secure further agreements (or at least one big arrangement) with other music labels, to increase its catalogue, before it can begin offering a service in the U.S.. Spotify is facing some big hurdles, though. According to MediaMemo, the labels are anxious “…that Spotify’s free streaming service will increase the decline of CD sales, which have been dropping for a decade, but still make up the majority of the labels’ revenue. And, “…there is also muttering that the labels don’t want to upset Apple, which sells tunes on a track-by-track basis via its iTunes store and dominates the market for digital music.”
However, last week The Post also reported that Spotify had the support of one other unnamed major music label. Though there seems to be an apprehension amongst U.S. music labels towards Spotify, perhaps we’ll be hearing reports of another Spotify / major music label deal in the coming days.
[Via Boy Genius]
Spotify reportedly signs US deal with Sony originally appeared on TUAW on Fri, 21 Jan 2011 12:30:00 EST. Please see our terms for use of feeds.
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