Spotify Signs First U.S. Music Deal with Sony

20 Jan

Spotify may finally be on track to come to the United States, as the startup has reportedly struck a deal with Sony Music Entertainment.

The deal will be similar to the ones Spotify already has in Europe, reports MediaMemo. In other words, you should be able to stream several hours of SME music for free, but have to pay to access the ad-free or mobile versions. Sony Music’s artists include AC/DC, Alicia Keys, Leona Lewis, OutKast and Michael Jackson.

Rumors about a potential deal surfaced last week. Spotify is also rumored to be in talks with another label, though it’s unclear which one.

While popular in Europe, Spotify has been unable to break the U.S. market due to the hesitation of the U.S. labels. They are not convinced that Spotify’s freemium model is economically feasible. Spotify also lost $26.7 million in 2009, giving labels more reason to doubt its profitability.

That looks to have changed, though. With Sony reportedly signed up, the other major labels could soon follow. Spotify will need at least one or two more record labels on its roster to have a large enough library for U.S. consumers. We’ll be watching and listening to find out who will be next to strike a deal with Spotify.

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