{"id":461072,"date":"2011-07-14T09:30:23","date_gmt":"2011-07-14T09:30:23","guid":{"rendered":"http:\/\/www.ghanamma.net\/2011\/07\/14\/spotify-finally-launches-in-us\/"},"modified":"2011-07-14T09:30:23","modified_gmt":"2011-07-14T09:30:23","slug":"spotify-finally-launches-in-us","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2011\/07\/14\/spotify-finally-launches-in-us\/","title":{"rendered":"Spotify finally launches in US"},"content":{"rendered":"

14 July 2011<\/span> Last updated at<\/span> 05:30 ET<\/span><\/span><\/p>\n

Streaming music service Spotify is set to launch in the US, after thrashing out deals with the major record companies.<\/p>\n

Its American service had previously been put on hold, apparently because the labels were not convinced about its ability to make them money.<\/p>\n

About 10 million people use Spotify across parts of Europe, with one million paying for its premium service.<\/p>\n

The company has reduced elements of its free product, ahead of the US launch.<\/p>\n

In April, limits were introduced on the number of times users of the basic version could play tracks.<\/p>\n

Total listening time was also reduced to 10 hours per month for the free service.<\/p>\n

The move was widely seen as a pre-emptive concession to the American record companies which are uneasy about moving to ad-funded or subscription-based distribution.<\/p>\n

Paying pennies<\/span><\/p>\n

Research suggests that services such as Spotify, Last.FM and Rhapsody yield relatively low returns for artists.<\/p>\n

Music industry analyst Mark Milligan calculated an average pay-per-play<\/a> figure on Spotify, based on the Ben Rodgers Band, of $0.004 (\u00a30.002).<\/p>\n

Cracking the United States might make the numbers more attractive, according to Giles Cottle, senior analyst at Informa Telecoms and Media.<\/p>\n

“They will only get their model to work if they successfully launch in the US.<\/p>\n

“It works if you get a large number of plays and you can get a lot of people to sign up to the premium service,” he said.<\/p>\n

Despite industry trepidation, Spotify has attracted high profile fans.<\/p>\n

Facebook founder Mark Zuckerberg described it as “pretty amazing”, while soundtrack composer and Nine Inch Nails frontman Trent Reznor took to Twitter to express his excitement about the US launch.<\/p>\n

Spotify is likely to face competition in the US from online jukebox Pandora which claims 100 million registered users.<\/p>\n

Premium membership of Spotify in the US costs $9.99 (\u00a36.19) – considerably cheaper than the UK price of \u00a39.99 and 9.99 euro in mainland Europe.<\/p>\n<\/div>\n<\/p>\n

Read More:
\nSpotify finally launches in US<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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