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Spotify to finally make its way to the U.S. market

on March 29, 2010, 10:45am

When Spotify was first announced, it shined to many like a beacon in the often drab world of music downloading. In fact, we’ve been fans since just about day one. So, obviously, it’s been tough to wait for the Stockholm-based company to continually serve Europe and just about ignore the American market, sans for apps on the iPhone, Google Android, and the Nokia Symbian. Well, us Yankees can finally stop our child-like yearning as the company, with 7 million users in Europe, aims to begin U.S. operations in the third quarter of 2010.

In an interview with Bloomberg, Senior Vice President Paul Brown said that the company was in talks with several unidentified Internet and mobile-phone service providers here in the States. On top of Spotify’s place with the aforementioned smart phones, they also are in discussion to bring the app to the BlackBerry and Palm Inc. smartphones.

“We’re buying server space in random parts of the states and there are licensing discussions too,” Brown said “But they are going fine because we’re in a long-term partnership with the labels and publishers.”

Spotify, which is owned in part by several record labels, is entering a new market at a time where digital music sales made up 27% of the industry’s revenue, or $4.2 billion, last year. As a whole, though, the market has shrunk by 30% to a revenue of $17.2 billion since 2004. The company would also be competing against the likes of MOG and Rhapsody in the U.S. Spotify currently has 325,000 monthly users, each who pay about $14.48 for a ad-free version of the service. Since it start in October 2008, the company claims to have had about 10 million euros in ad turnovers.

More news on the company’s U.S. debut once they become available

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