Spotify teams with Microsoft as U.S. launch buzz grows

Digital streaming music service Spotify extended its services to Microsoft's Windows Phone mobile platform, introducing an application available for download now for smartphones running the current Windows Phone 6 operating system--the firms also said Spotify will be available on devices powered by the new Windows Phone 7, slated to formally launch on Oct. 11. Microsoft and Spotify recently collaborated on an application for the Windows 7 desktop platform, enabling users to create shortcuts to their favorite Spotify playlists (Jumplist), control Spotify from the taskbar and lock open Windows on the desktop (Snap). Features also include sharing tracks and playlists with users' Windows Live contacts. The new mobile application will enable Windows Phone consumers to synchronize their digital music experience via the cloud--Microsoft notes the Spotify app was designed from the ground up to follow the WP7 design theme.

Spotify is available to Microsoft users in Sweden, Norway, Finland, the Netherlands, France, Spain and the U.K. Rumors continue to persist Spotify will roll out in the U.S. prior to the close of 2010. Insiders say major American record labels are pressuring digital streaming music service Spotify to jettison its current free content approach in favor of a guaranteed revenue model, citing the impasse as the culprit behind Spotify's inability to expand into the North American market. While the majority of Spotify users in Western Europe tune in to a free, ad-supported version of the service, BusinessWeek reported in mid-June that the four majors--Universal Music Group, Warner Music Group, Sony Music Entertainment and EMI Music--want Spotify to follow the lead of rivals like Rhapsody and eMusic by introducing premium monthly subscriptions to U.S. consumers, enabling the music industry to share in resulting revenues. "Free streaming music services are clearly not a net positive for the industry," said Warner Music CEO Edgar Bronfman Jr. during a February earnings call. (Warner was an early Spotify investor.)

Spotify now boasts over 10 million registered users across Europe. In addition to its signature free service, the firm offers two premium plans--for about $6 per month, listeners get unlimited playtime with no ads, while a $12 package features improved sound quality and access from smartphones including iPhone, Android and Symbian devices. About 500,000 paying subscribers have reportedly signed up for the premium plans.

For more on the Microsoft/Spotify deal:
- read this release

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