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. Research suggests that services such as Spotify, Last.
FM and Rhapsody yield relatively low returns for artists. Cracking the United States might make the numbers more attractive, according to Giles Cottle, senior analyst at Informa Telecoms and Media. Despite industry trepidation, Spotify has attracted high profile fans.
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.
Spotify is likely to face competition in the US from online jukebox Pandora which claims million registered users. Spotify heads West to the US Spotify's US launch has been dependent on signing deals with the four largest record labels — Universal, Sony, EMI and Warner Music — though Warner is understood to have only completed the deal on Wednesday this week. The US launch, and the protracted negotiations with record labels, was preempted in May by an unpopular adjustment of the terms of use for its free account holders, who make up about 8.
Accounts were limited to 10 hours streaming per month with a cap of five listens per track. The US is only the eighth country Spotify has launched in, and the first outside Europe. It launched in the UK in February Stream On During Stream On, we explored the power of audio for millions of creators and billions of fans around the world.
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