Spotify has secured $50 million in investment funding, even while company staff anxiously wait to see if Apple gives permission for the music streaming service to offer an application to iPhones.
Spotify has attracted over two million users so far and is whispered as a service likely to threaten Apple’s iTunes. It offers users the chance to stream songs using the internet without downloading tracks.
Ads-supported, it also offers download sales and a £9.99 ad-free subscription service, membership of which is required to use the iPhone app.
Hot on the heels of news of Spotify’s submission of an iPhone application which enables music playback using its service comes news of yet another streaming music service with an iPhone plan.
Grooveshark also plans to introduce a streaming music application to the iPhone. That service is comparatively small, receiving 1.3 million visitors a month. It’s interesting because it lets users upload whatever they want, and removes content only when it receives a takedown notice.
With the onus on labels to tell Grooveshark when to remove tracks, it’s not a great surprise the company so far lacks any licensing deals with the majors, and has at least one copyright infringement lawsuit on its books.