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Spotify Reportedly Inks Universal Deal

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Spotify could finally be ready to take its first tentative steps onto US soil if reports are to be believed.

Several media outlets including All Things D and the Wall Street Journal are quoting sources familiar with the deal saying that Spotify has signed an American distribution deal with Universal Music Group, leaving only Warner Music Group as the only one of the big four labels yet to pen a deal. Spotify is hoping that as a deal with Warner is closer than ever, it will be able to make the move to the US this summer. CEO Daniel Ek has been trying to move into the lucrative area of the US for the past two years but has failed to get the deals in place with the four major labels. Earlier this year Spotify managed to sign deals with EMI and Sony.

                        Spotify

The service in the US is likely to launch on similar terms to the way it operates in Europe with a charge of $10-a-month for the premium service. However Spotify is now coming to market in the US when a couple of other services have launched in recent weeks. Both Google Music and Amazon’s Cloud Drive services offer cloud/locker services in the States where users can upload all their music to the cloud. Of course there is also this little company called Apple who last week announced it iTunes in the Cloud service for $25-a-year which will be more competition for Spotify. However the one area where Spotify hopes to win over customers is that it gives users mobile access to millions of songs which they don’t have to own, whereas the services from Apple, Google and Amazon only allow mobile access to songs you already own.

It’s had been a long road for Spotify to get to the US and while it isn’t over yet, the end does seem to be in sight. However the delay could have affected its chances of succeeding as there is now a lot more competition in the market – which for us customers is never a bad thing.

Source: All Things D and The Wall Street Journal

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