Biggest concern is that record companies, Spotify can attract enough users to switch to paid services free of charge. Spotify, said the company a total of about 10 million registered users, approximately 750,000 paying subscribers. In other words, the conversion rate of 7.5%. Record industry insiders said that, Spotify plans to achieve 6-8% conversion rate, but this is unlikely to pay the costs.
a record industry executives who requested anonymity, said: In addition, Google and Apple may launch this year's new cloud computing service charges. This will also make Spotify worse.
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another person said, Universal Music, the internal ability to quickly reach for the transaction there is still a question.
one person said, Spotify the absence of Warner Music has prepared, which accounts for 20% market share.
SAN FRANCISCO Feb. 24 noon news, informed sources, the European digital music service providers Spotify is the world's largest music company Universal Music negotiations, Universal Music, a few weeks will be in the U.S. The music licensing.
Spotify declined comment. (Seasonal)
to the source, although the negotiations did not progress, but still possible to reach an agreement at the last moment. Spotify Bronfman on the performance in the European market is very satisfactory.
Universal Music and Warner Music, but executives are worried that, Spotify could erode free music music store iTunes, Apple's sales, and the impact of Rhapsody and MOG and other paid music services.
Spotify adopted the so-called Paid services do not include ads, listen to unlimited number of times also.
but one person said, Spotify ultimately may not work with the world's third largest record company Warner Music deal. According to reports, the London-based Spotify to one billion U.S. dollars just this week received $ 100,000,000 valuation of investments.
Spotify has been in the European market with all the major record companies signed a contract in the U.S. market and has announced the signing with Sony Records, but sources confirmed that the company has reached with EMI license agreement for the U.S. market .
Universal Music spokesman said the company is still negotiating with Spotify, but did not reveal the specific timetable. Warner Music Group declined comment.
Spotify Ike by the Swedish entrepreneur Daniel (Daniel Ek) and 马汀罗伦松 (Martin Lorentzon) founder, has been in Europe, attracting a large number of digital music lovers. Since the user interface is very friendly, so that the music streaming service has become one of the leading manufacturers.
Informed sources said that despite the Universal Music Group is expected to eventually enter the U.S. market this summer Spotify ago, signed an agreement with them, but Warner Music is not likely to participate. Warner Music CEO Edgar Bronfman (Edgar Bronfman) last year had publicly questioned the business model Spotify feasibility in the U.S. market.
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