Innovative subscription and ad-supported music streaming service unveiled
All four music majors and leading independents on board
Spotify announces a series of licensing deals with music companies including EMI Music, Universal Music Group, Sony BMG, Warner Music Group, Merlin and The Orchard for their content to be included in the new digital music service. Spotify offers instant access to a world of music via a service that enables on-demand streaming of audio content.
Spotify users will have unlimited access to millions of tracks from a vast music catalogue, with the opportunity to create and share playlists with each other and explore music through a wide range of discovery and social features.
Spotify will launch on October 7th 2008 in UK, Germany, France, Italy, Spain, Finland, Norway and Sweden. Throughout the remainder of this year and into 2009 Spotify will be rolled out to further markets. Spotify will be marketed both as a premium monthly subscription service and a version which is free for consumers to use and supported by advertising. Consumers will also have the option to purchase a day pass that gives access to Spotify without advertising. Advertisers that have signed up to be included from the launch include Ford, T-Mobile and Xbox.
Daniel Ek, founder and CEO at Spotify says: “We believe that everyone loves music, and we’re thrilled to partner with all major content owners already at launch. This is an exciting step forward in our mission to provide the best possible music experience by allowing people to listen to whatever they want, whenever they want.”
Stefan Blom, SVP Commercial Development for EMI Music said: “EMI is committed to supporting innovative and user-friendly music services. Spotify is a compelling new way of connecting artists and fans which reflects the shift we are seeing in digital music from a total reliance on a-la-carte services to the addition of new models that provide instant and legal access to our artists’ music.”
Rob Wells, Senior Vice President, Digital, Universal Music Group International said: “Subscription streaming services are the future of digital music consumption. Spotify is an excellent consumer experience and Universal Music Group International is delighted to be a part of the launch.”
“We are excited to be working with Spotify as they develop this distinctive online destination that will include both ad-supported content as well as quality premium packages,” said Ulrich Jaerkel, Senior Vice President, Digital & New Business Development Europe, Sony BMG Music Entertainment. “With such an easy-to-navigate interface and wide variety of music and features for users to enjoy, Spotify promises to be an online fan-favourite.”
Leanne Sharman, Vice President, Business Development, Warner Music EMEA said: “From launch, Spotify is a wide-ranging, flexible and engaging music experience. By offering a compelling choice of ad-supported and paid-for services, the platform is in a strong position to foster a loyal community of users and attract advertisers. Not only that, Spotify will be a powerful promotional and discovery engine through which our roster of artists can grow their fan-bases.”
Charles Caldas, CEO of Merlin said: “We are genuinely excited at the fantastic quality and attention to detail behind the Spotify service and at the innovative business opportunity for our members. We are equally pleased that Spotify quickly recognized the true value that Merlin has brought to the market and has worked hard with us to ensure that the independent labels that constitute our membership are available to their users from day one.”
“Spotify says, ‘Everyone loves music’. We agree, and voted with our feet by bringing tens of thousands of great artists from all over the world into this innovative new service, which is tailor-made for independent music. Ad-supported music discovery is an exciting future increasingly here today, and we are confident that Spotify will turn people onto our clients’ art, and play a role in helping our artists and labels to get paid as they build audiences,” said Greg Scholl, president and chief executive officer for The Orchard.