Spotify nearing deals with major US record labels

Spotify, a streaming music service with more than 10 million users worldwide, is reportedly nearing music licensing deals with the four major US record labels. According to CNET, multiple sources with knowledge of the situation are claiming that Spotify has never been closer to securing the music rights it would need for a US launch. They've been plying label executives with offers of big money up front, although nobody has reported the exact amounts.

One sticking point has been Spotify's rate of selling premium accounts to its free users. Right now, the percentage of Spotify users paying for premium service is below 10 percent. The labels have apparently been pushing for something closer to 15 percent before signing. The labels don't want to compete with themselves by helping to sign up a bunch of free Spotify customers who might otherwise pay for music on iTunes or Amazon MP3. In fact, we reported earlier this month that Apple might be quietly trying to stop Spotify from launching in America.

Closing these deals might allow Spotify to meet its goal of launching in the US by the end of the year, but don't hold your breath. Spotify has announced two previous launch dates this year, and they've both passed by with no action.

Tags: music, record labels, RecordLabels, spotify, streaming