14 DAY TRIAL // Spotify has been wanting to launch in the US for more than a year now and, despite numerous rumors and promises, it has failed to do so. The problem is the lack of support from the major record labels which don't want a free music streaming offering.
But Spotify has finally managed to close a couple of deals with the record labels, according to sources, and has now successfully ended negotiations with EMI.
All Things D reports that EMI, the smallest major record label, has signed on to license its catalog to Spotify in the US. This should be another major victory for the music streaming startup which has struggled to do so for many, many months now.
It's unclear what are the terms of the deal, whether the record labels have agreed to enable Spotify to operate a freemium service in the US like it does in Europe, or whether the startup has caved to the pressure.
Neither Spotify nor EMI would comment at this point. With EMI on board, Spotify has two out of the four major labels behind it. However, to make any serious attempts at launching in the US it is going to need Universal Music Group to join as well.
UMG is the largest label in the world and without its catalog, Spotify would have a hard time competing, even if it's free. There are plenty competitors out there, notably new-comers Rdio and MOG, and also the free Grooveshark.
Even better, Spotify should secure the licenses for songs by artists represented by Warner Music Group as well. At this point, negotiations with Universal are looking favorable, apparently.
Of course, if Spotify manages to get three labels, Warner should follow suit, though it has held out in the past. It has removed its catalog from YouTube during a renegotiation phase, even while songs from every other major label were available on the site.