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Facebook and Spotify Deal Could Bring Users Simulataneous Music Listening Experience

Spotify Lands Universal Music Deal, One Step Closer to U.S. Launch

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By: Spacelab Research Staff
June 11, 2011

The on again, off again, on again story of a Spotify U.S. launch moves one step down the line again with the news that Spotify has signed an agreement with Universal Music Group for licensing of Spotify's streaming music service.

"Multiple sources tell me the Universal deal was finished this week. Spotify declined to comment; a spokesman for Universal hasn’t responded to requests for comment. Spotify signed on Sony and EMI Music Group earlier this year," reads the report from Peter Kafka at All Things D.

The digital music service has now secured deals with Universal Music, Sony Music and EMI Music, leaving Warner Music as the (usual) last major label to get on board with licensing. All in all, Spotify has 1 million subscribers in Europe and over than 10 million registered users overall.

Spotify's Premium subscription is $16 a month in Europe and allows you to play an unlimited amount of music on a computer or mobile phone without advertising, while Spotify Unlimited costs £4.99 a month. You can listen to Spotify for free, with ads, based on their freemium model of service.

This follows a rumor earlier this week that Spotify was on it's way to developing a Facebook music service.

According to TechCrunch, Spotify is wrapping their deal with Facebook and is getting funds from venture capital group DST and Kleiner Perkins and finalizing deals with the major recording labels. Maybe Apple just wanted to be the first to launch a legit service 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.

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.

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

Tags: Spotify, Universal Music, Digital Music News
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