As Spotify -- the popular online music service -- nears profitability in Europe, the situation isn't quite as rosy across the pond. With Spotify's hopes of a 2010 U.S. launch
officially dashed, the company is still facing an uphill climb in the States. The sticking point, according to sources cited by The Telegraph
, may be financial demands from the U.S. record labels. Concerned that users will heavily favor Spotify's free service, the labels (EMI, Sony, Universal, and Warner) are apparently requiring "extremely high cash advances" to secure access to their catalogs.
Spotify is reportedly now seeking additional funding, though there's no telling how much longer it will take to get the service up and running in the U.S. At this point, Spotify is saying only that "negotiations are ongoing."