Spotify Stalls U.S. Launch Due To High Demands From Record Labels

Posted Jan 5, 2011

Online European music streaming service Spotify has decided to halt their plans to launch in the U.S. because of the record labels here. The company promised that they were planning on launching in the U.S. for the last year. The U.S. arms of major record labels have been demanding large minimum guarantees and high cash advances. Essentially the record labels are not comfortable with the “freemium” model.

?The American music market is the biggest and most complex in the world. It took us 18 months before we were able to launch in Europe, it’s taken us longer than expected in the US but we?re working hard to ensure we launch with the best service possible,? stated a Spotify spokesman in an interview with Telegraph UK.

Spotify offers unlimited streaming and mobile access to their service for £9.99 per month and a £4.99 option that turns off the ads, but does not let you access the service on a mobile device.