Archive for: spotify iphone app

Spotify iPhone App Gets Accepted into iTunes Store, but did iTunes Make a Deal to Be a Music Download Provider?

There has been a lot of talk this morning about Spotify getting their new iPhone application accepted into the iTunes store. I know we have talked a lot about Spotify recently including them entering into the Chinese market, USA market, and how to use Spotify if your based in the USA or any other country. However, today’s news is probably bigger than all of these.

The company’s iPhone application has been approved for the App Store ahead of competitors Rhapsody and Grooveshark. PaidContent UK reports that Apple has notified Spotify that its app will appear in the store shortly. In late July there was fear that the Swedish site’s iPhone service would be denied due to the fact that it was seen as a threat to iTunes.

Unlike many other iPhone music apps, Spotify’s iPhone service offers users the ability to select tracks and listen to them in an offline playlist. The ability to cache files is a huge asset to those who commute to work without a wireless connection.

With today’s announcement, Spotify’s audiences in the UK, Sweden, Norway, Spain, France and Finland will be more likely to pay for the company’s premium service.

This is a very interesting decision by Apple who recently blocked Google Voice from entering the app store because it basically provided free phone calls via the iPhone. I dont think Spotify is a future competitor to iTunes because they are offering completely different products. iTunes provides a platform to purchase digital products, while Spotify is strict music streaming service. However, im very surprised that Apple didnt make an agreement with Spotify and accept them into their iTunes store but only if iTunes because a default download provider for the music on the service (like 7digital currently).

Spotify Seeking Funding and Revenues

Previously we have written about Spotify’s upcoming Android application as well as their iPhone app, but currently Spotify is fast approaching its “payment due” day.

Spotify has been able to attract a huge amount of users but their free section is being used a little too much and they are now finding difficult to generate enough income to pay their major label partners by the date due.

Currently Spotify seem to be trying to increase incomes in three key areas:

1. A premium service is getting much more attention from Spotify as it adds additional features beyond just “ad free” to attaract paid users.
2. Spotify is rolling out by far its largest advertising format to date. It will feature wall to wall billboard ads on its music player that appear after just 5 minutes of inactivity as part of a major 3 Mobile ad campaign. (However, if I’m inactive on Spotify I tend not have the application open on my screen its just in a tab at the bottom, thus the ads showing will obviously have no affect whatsoever.
3. To buy more time, the startup is on the hunt for another $40-$50 million in venture capital funding. (paidContent)

I personally use Spotify and find it pointless to upgrade to their premium service because I receive unlimited listening time, tracks, search and playlists. I know they are finding it tough to gain additional revenues and maybe moving their product into iPhone and Android markets is a better bet to increase revenues fast enough.