By Devin Chanda
Spotify, Western Europe’s answer to Grooveshark, may soon usurp its competitors here in the States. The Swedish-based music streaming service is a “few weeks away” from reaching a U.S. distribution deal with Universal Music Group, reports Reuters.
The agreement would allow Spotify to offer music from 80% of the market upon its U.S. launch, having already agreed deals with Sony BMG and EMI.
Operating on a “freemium” model, Spotify extends free, ad-supported streaming to users, with the hopes that some will pay to upgrade to an ad-free service. And though it has 10 million registered users, only 750,000 of those pay for the premium, leading some to question Spotify’s business model. Notable critics include Edgar Bronfamn, CEO of Warner Music Group, whose company has yet to make any progress on a deal with Spotify.
