November192009
U.S. Labels Unconvinced By Spotify’s Freemium Model »
Patrick Smith / paidcontent:
On-demand music streamer Spotify’s U.S. launch is being held up because labels are concerned too few users may migrate from ad-supported to premium.
FT.com reports anonymous concerns from three of the four major labels. One exec: “As an ad-supported service, the economics don’t work at all.
“We think Spotify is a great service but they’re going to have to convince us they can convert enough people from free to paid subscriptions to make it worth our while.”
