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  • Spotify Blaming Apple for Difficulties Launching in the US

    image: upvery.com

    Spotify, the music streaming service that is extremely popular in Europe, is directly blaming Apple and their iTunes juggernaut for their inability to strike deals with the major music labels and bring their service to the United States.

    The company had previously stated that they had their sights set on a plan to launch by the end of 2010. We're now one full month into 2011, and there are still not many signs that Spotify is even close to launching. There is only one bright spot for the company as far as launching in the US goes, Spotify was able to come to a deal with Sony, but other labels aren't completely sold yet.

    Spotify's head of business development, Faisal Galaria, was interviewed by StrategyEye, and said unequivocally that he thought Apple was to blame for this problem:

    If you’re the digital team [at a label] and 80% of your revenue was coming from one place, how much are you going to p*ss them off until someone else can guarantee all that revenue from a new source?

    Put yourself into their shoes for a moment: you’re a nice, fat big executive at label X, Y, Z. You’re getting half a million dollars a year as long as you hit your bonus. Your bonus means that 80% of your revenues comes from iTunes. Are you going to tell iTunes where to go? Because your half a million dollar bonus has now gone.

    Even if you’re this big, fat executive, you might agree that Spotify is the best thing. Am I going to risk it?"
    Galaria would not state the company's new launch goal, but said that Spotify had one, but that opening in a new market has proved to be a "military exercise." Until they're able to strike deals with more labels, the US's big, fat market remains untapped with the absence of Spotify's music streaming. There seems to be little to no timetable as to when these deals could get done, and still no word on Apple launching their own streaming iTunes service to combat Spotify.

    Source:
    CultOfMac
    Interview
    This article was originally published in forum thread: Spotify Blaming Apple for Difficulties Launching in the US started by Matt Savoca View original post
    Comments 15 Comments
    1. JesseDegenerate's Avatar
      JesseDegenerate -
      I wonder how pandora did it then. Probably by crying less and making more good points. Maybe they don't need spotify when they have Pandora.

      Wow a company that does a great deal of volume gets more attention and care, holy ****! Cry more about the laws of economics.
    1. Norb's Avatar
      Norb -
      Don't understand how any of that is Apple's fault... but who cares isn't RDIO.com pretty much the same thing? The already have apps for many different platforms as well and I don't recall them being mad at Apple for being successful with iTunes...
    1. santacruzlocal's Avatar
      santacruzlocal -
      Maybe they should just change their name maybe apple won't notice !!!
    1. coolduckey's Avatar
      coolduckey -
      they should just crack a deal with sony, like they did, then put an app on the PS3 to stream music while playing games
    1. mardinn's Avatar
      mardinn -
      @coolduckey
      That is a great idea. I live in Europe and to be honest spotify is a great service. Free or premium. It's fine, but if it would come to Sony then that would just give the PS3 a Huge Boost.
    1. cpkirkley's Avatar
      cpkirkley -
      Quote Originally Posted by Norb View Post
      Don't understand how any of that is Apple's fault... but who cares isn't RDIO.com pretty much the same thing? The already have apps for many different platforms as well and I don't recall them being mad at Apple for being successful with iTunes...
      Their point of contention with apple is that in order to continue the success of the iTunes market - they are disallowing apps like spotify to make it into the country as competitors.

      Also, Pandora is a different type of service than spotify. They can't be compared. Spotify is akin to Microsoft's Zune Pass - but more awesome. To be honest Spotify might be the best out of all the services - which is kinda why Apple is playing hardball to keep them out of iTunes airspace.
    1. Norb's Avatar
      Norb -
      I said nothing about pandora, read about this app it just recently came out. It lets you listen to pretty much any album and also sync to your phone for offline play.

      RDIO:
      Rdio for iPhone, iPod touch, and iPad on the iTunes App Store

      What more does zune pass or spotify do that this doesn't?

      This is $10 a month for mobile devices and $5 for streaming from web.


      Quote Originally Posted by cpkirkley View Post
      Their point of contention with apple is that in order to continue the success of the iTunes market - they are disallowing apps like spotify to make it into the country as competitors.

      Also, Pandora is a different type of service than spotify. They can't be compared. Spotify is akin to Microsoft's Zune Pass - but more awesome. To be honest Spotify might be the best out of all the services - which is kinda why Apple is playing hardball to keep them out of iTunes airspace.
    1. Zokunei's Avatar
      Zokunei -
      I like Matt's Photoshop work more than the rest of the writers'
    1. steve-z17's Avatar
      steve-z17 -
      It's Apple's fault because they can't make deals with companies? Huh....
    1. Gustavo Saliola's Avatar
      Gustavo Saliola -
      I strongly believe in Karma. The good & the bad you do, always comes as a boomerang. I live in Buenos Aires, Argentina, and had to "crack" the Spotify app to work on 2009, due to support and other shaits. What happened to a company who made things difficult for several countries? It sunk! What happened with another (Cogh...Grooveshark) who made it wright worldwide? Success. Thats what i'm using today, and works free & flawless.
      Plain and easy: Consumers choice. We know ours...
    1. cpkirkley's Avatar
      cpkirkley -
      Quote Originally Posted by Norb View Post
      I said nothing about pandora, read about this app it just recently came out. It lets you listen to pretty much any album and also sync to your phone for offline play.

      RDIO:
      Rdio for iPhone, iPod touch, and iPad on the iTunes App Store

      What more does zune pass or spotify do that this doesn't?

      This is $10 a month for mobile devices and $5 for streaming from web.
      My statement about pandora was not directed at your post, rather a couple posts above yours.

      Rdio is no different than Spotify, other than the fact that Rdio came after Spotify. ALL of the features of Rdio have been available on Spotify for quite some time.

      Zune Pass does everything both of these services do, with the bonus of 10 free songs every month. You may be thinking "how the hell is this different than Rdio? The difference is that with both Rdio and Spotify, you can download songs for offline use - as long as your account is active and you continue to pay your subscription fee. Spotify trumps Rdio in that its web streaming feature is FREE (ad supported). Think Pandora but with totally customizable playlists, or think RDIO with free streaming. With both RDIO and Spotify you will lose the ability to replay the songs you've downloaded if your subsciption lapses. Zune pass is giving you 10 free songs a month - which are yours to keep regardless of subscription status. Also, as far as I know, Spotify's downloads are 320kbps OGG files, which are higher that what Rdio is offering (ATM at least). Zune uses dual pass WMA at 192 - to be honest the difference is negligible, but you did ask for a quantifiable comparison.


      The reason Rdio is in America and Spotify is not (both are foriegn created entities) - is because the American record companies wanted a paid subscription model from day one - which Rdio proposed from the very beginning. Spotify wanted to have a longer trial (read free) period to generate the buzz, and count on overwhelming momentum to allow itself to implement a subscription plan afterward. A tactic which has attracted an IMMENSE following overseas. The desired model in America is totally different - and as such Spotify would have to change the way it does business, or get the record companies to embrace a different way of thinking. With these companies so heavily entrenched in the iTunes/iPod machine, they don't have to negotiate whatsoever. They will continue to put the vote (and their music) on the horse with a proven, UBER profitable track record.
    1. CZroe's Avatar
      CZroe -
      Quote Originally Posted by Norb View Post
      I said nothing about pandora, read about this app it just recently came out. It lets you listen to pretty much any album and also sync to your phone for offline play.

      RDIO:
      Rdio for iPhone, iPod touch, and iPad on the iTunes App Store

      What more does zune pass or spotify do that this doesn't?

      This is $10 a month for mobile devices and $5 for streaming from web.
      To start, Zune Pass works offline. I prefer Napster2Go just because the DRM can be broken to use subscription music on unsupported devices. MS used to offer Janus DRM subscription music as a standard but stopped supporting it when the Zune arrived and made Zune Pass exclusive to the Zune and WMP.

      It should have supplanted sat radio with subscription podcasts and live online streaming included but critics couldn't get over the fact that you didn't own your offline tracks. You didn't own anything with sat radio either and you couldn't use it where you had no signal nor could you play the song/show you want on-demand.
    1. StealthBravo's Avatar
      StealthBravo -
      I would love to check out their service
    1. cpkirkley's Avatar
      cpkirkley -
      Quote Originally Posted by StealthBravo View Post
      I would love to check out their service
      I travel to England pretty frequently because of job and family visits - I use it while I'm there, as do all my friends/acquaintances. Spotify is the only thing that I consistently use while I'm across the pond - And it would blow up like no other if they let it come to the states in its current form. Its as close to pure music win as you can get.
    1. EskimoRuler's Avatar
      EskimoRuler -
      i dont think its that apple did something bad, its just that they have the majority of digital music and no label is going to leave them for another