Professional Documents
Culture Documents
http://web.ebscohost.com.ezproxy.london.edu/bsi/delivery?sid=224a59...
Record: 1
Title: Authors: Source: Document Type: Subject Terms: Company/Entity: Why Europe's Hit Music Site Isn't Playing the U.S. Grover, Ronald Satariano, Adam Bloomberg Businessweek; 6/14/2010, Issue 4183, p32-33, 2p, 1 Color Photograph Article *STREAMING audio *ELECTRONIC commerce SPOTIFY Ltd. WARNER Music Group Inc. DUNS Number: 943043745 SONY Music Entertainment Inc.
NAICS/Industry Codes: NAICS/Industry Codes 454111 Electronic Shopping 425110 Business to Business Electronic Markets Abstract: The article discusses the inability thus far of online music service Spotify to enter the U.S. market. Several U.S. music publishers including Universal, Sony, and Warner won't allow Spotify to make available their song catalogs free to customers, as they do in Europe. Instead, they want it to adopt a business model that will generate monthly revenues. 0007-7135 51396471
1 di 2
30/04/2011 17:35
Business Source
http://web.ebscohost.com.ezproxy.london.edu/bsi/delivery?sid=224a59...
listeners get unlimited playtime with no ads; $12 buys better sound quality and the ability to play music from a cell phone. So far only 320,000 users have signed up for subscriptions, a sign that Europeans exhibit the same resistance to paying for music that Americans do. For the record labels, clearing that hurdle is crucial as CD sales continue to plummet and Apple's iTunes keeps its grip on digital music pricing. "Nothing in digital has been able to counter the decline in traditional revenue sources," said Ek, 27, at an industry conference in March. Record companies, he said, are "concerned about how to ensure that people don't stop buying CDs." The major music companies have been pressing Spotify to ally with wireless service providers so they can get a cut of the monthly charges. Spotify has tried that, signing a deal with Swedish telephone operator Telia. Plus, it has created apps for the Apple iPhone and handsets powered by Google's Android software. Google also has been "kicking the tires" at Spotify, according to music executives with knowledge of the search engine's interest, but no acquisition is in the works. Apple bought Lala, another music streaming service, last year, only to shut it down at the end of May. The talk in the industry is that Steve Jobs wants to incorporate Lala's technology into a subscription version of iTunes, which would allow listeners to gain access to their music libraries from any device. Whether Spotify becomes an iTunes competitor will depend on the fickle tastes of consumers. One part of the equation will be whether the music labels let it do business in the U.S. The bottom line: The music majors are pressing a hot European startup to dump its free service as a condition for licensing their tunes for use in the U.S.. PHOTO (COLOR): Spotify founders Daniel Ek and Martin Lorentzon Copyright Bloomberg L.P., Copyright 2010
~~~~~~~~
By Ronald Grover and Adam Satariano Edited by Jim Aley Copyright of Bloomberg Businessweek is the property of Bloomberg, L.P. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use.
2 di 2
30/04/2011 17:35