• 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.

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