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Facebook and Spotify Deal Could Bring Users Simulataneous Music Listening Experience

Spotify Launch Rumors Get Truth With VC Deal, Facebook Deal

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By: Spacelab Research Staff
June 8, 2011

Spotify is the second most told tale of a new streaming music service launch in the U.S., next to the Apple iTunes in the Cloud / iCloud offering. One of those came true this week, the other one has new news that Spotify might be nearing a U.S. launch, it looks like it's not a rumor.

According to TechCrunch, Spotify is wrapping their deal with Facebook (so the Facebook / Spotify rumors were true) is getting funds from venture capital group DST and Kleiner Perkins and finalizing deals with the major recording labels. Maybe the Apple just wanted to be the first to launch and made it a condition of their iCloud arrangement? That's just speculation, but now that Apple has had their big spotlight, it could open the door to others like Spotify to move forward.

"Spotify is pulling off a hat trick. They have a pending deal with Facebook to finally launch the service in the U.S. And they have a pending venture capital deal with DST and Kleiner Perkins that will value the company at $1 billion or more.

Both of those “pendings” require the successful completion of U.S. music label negotiations. The labels finally agree, it triggers the Facebook deal and the venture capital deal and Spotify will finally fulfill that promise," reads the post from the TechCrunch web site.

There was recent news that the Spotify Facebook service was being tested, and would allow Facebook users to listen to a song simultaneously, in real time, as a shared music experience. They'd have the full run of the Spotify streaming music service inside of the FaceBook tent, to keep FaceBook users "inside the compound."

This type of Spotify - Facebook arrangement would be consistent with deals Facebook has done with others like FarmVille video game maker Zynga. Facebook has also worked with partners like Warner Bros.in the past to provide streaming movie and video services. It appears that Facebook doesn't want to build these services themselves, but rather offer them from third parties to Facebook users. If you have a FaceBook account, don't forget that you're not the customer,you're the product, and you're being sold to advertisers. Deals with Spotify and Zynga are just there to keep you hanging around.

Check out more about steaming music sites in the Spacelab Streaming Music Guide.

Tags: Spotify, Facebook, Digital Music News
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