Monday, June 13, 2011

Spotify is a licensing agreement with Universal Music

The online music service Spotify has signed a licensing agreement with Universal Music, the world's first label. The agreement was sealed two weeks ago, showed, Friday, June 10, unnamed sources quoted by Reuters news agency. Spotify has now catalogs of three of the four major labels, or 70% of the market and makes its imminent arrival on the U.S.

market, according to two sources cited. The streaming site has indeed reached an agreement with the U.S. Sony Music Entertainment and EMI. Sources contacted differ on whether Spotify will launch just before or after entering into a partnership with Warner, the world number three single disc and staff now missing its offer.

Founded by two Swedes Daniel Ek and Martin Lorentzon, Spotify, among other competitor's French Deezer is the European leader in online music. It derives its success from its model "freemium", which focuses on the attractiveness of viewing free advertising but preceded to convert users into customers premium service.

Spotify has more than one million paying subscribers to its service in Europe for a total of 10 million subscribers. TWO YEARS OF TALKS The streaming site seeks to enter the U.S. market, but the last two years the discussions foundered on the question of fees for the majors, the major music labels.

Labels seemed reluctant to cooperate with Spotify due to the high number of securities to which the site provides access, and are also subject to pressure from their partner Apple, which sells songs or full albums on iTunes site store and sees a rival in Spotify. The announcement that Universal Music also then decided to lodge a complaint against Deezer urgent proceedings before the Tribunal de Grande Instance de Paris for copyright infringement, according to L'Express.

According to the information site, "Deezer continues to offer catalog label on its free service, so that the operating agreement has not been renewed since January.

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