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Spotify Reportedly Secures Deal With EMI

Posted by on February 21, 2011

We’ve been reporting how Spotify’s U.S. debut has been on and off for a while now. Recently, hopes were high after the European music subscription service was reportedly close to an agreement with Sony, only for it to end up being downplayed again. However, while an official announcement is expected to be made soon, Digital Music News is reporting that Spotify has now secured a deal with EMI. Despite this new victory, we still shouldn’t hold our breath for its U.S. debut. Even though Spotify now apparently has Sony and EMI on their side, they still have to convince Warner Music Group and UMG. Whether any head way has been made with the remaining label powerhouse is yet to be seen, although Digital Music News also reports that WMG might be softening up.

The thing that’s been derailing negotiations this entire time is record label’s resistance to allowing consumer access to music for “free.” Spotify’s free “all-you-can-eat” account  allows users to access unlimited music for free in exchange for advertisement space, while also offering a $10 account that still gives unlimited music but with no advertisements. The labels’ beef with this is that they’re afraid of the free account “devaluing” the music, while there also isn’t enough proof that consumers will make the switch to the $10 account. Spotify securing EMI may show that more headway is being made in negotiations with labels, but still isn’t enough proof that the service is coming to the States within the year. We’ll keep you posted when more develops with Spotify’s negotiations.

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