Labels own shares in Spotify, iTunes target?

spotify_logoSpotify continues to attract attention, with whispers that the service may be gearing up to compete with iTunes gaining a little more credibility on news the major amd indie music labels own a slice of the service’s action.

Sony BMG, Universal Music, Warner Music, EMI and Merlin (the body which represents Europe’s independent labels all own shares in Spotify, shares the company offered the labels for an aggregate €8.8 million – presumably as part of the negotiation to secure permission to stream their music online.

Together, the labels own 18 per cent of Spotify. Sony BMG took the lion’s share, now owning 5.8 per cent of the service.

Now we know the labels own a slice of Spotify, it’s pretty clear that the service’s plans to extend into the US have support from the labels themselves. This should help Spotify secure the sundry licenses it requires for the territory.

Meanwhile, Spotify continues to wait to see if Apple approves its iPhone application. Company co-founder, Daniel Elk, is confident Apple will approve the app, saying his firm has a “great relationship with Apple.”

He says his firm has spent significant time and resources to ensure the app fits within Apple’s developer guidelines, even though it doesn’t direct music sales through to iTunes, which all other streaming apps do.

In the background to Spotify-spotting some signs do exist which suggest Apple may have its own streaming music plans, with that company sharing a business plan with regulators last year which exposed some ads-funded ambition on the part of Cupertino.

This game seems set to continue for some time.

3 thoughts on “Labels own shares in Spotify, iTunes target?

  1. get free itunes

    This looks very promising however it is not available in the United States or several other countries. I read they were in talks with major US labels who want to see this in the U.S. so it’s just a matter of time.

    When that happens, I’d gladly ante-up to give this a test drive.

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