Spotify Gathers Investors To Enter American Market

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Spotify is getting closer to the American market. The Financial Times reports of new investments from London and Hong Kong as well as potential investors from within the music industry. The company, founded by Swedes Daniel Ek and Martin Lorentzon in 2006 is considered a prime challenger to iTunes within legal music services. Spotify only streams the music instead of saving it on the computer and pays royalty to the artists for each song they play, hence an investment deal with a record company could lead to better terms and conditions. Spotify does what we love here at PSFK – offering a free service with advertising and a premium one without commercial interruptions. Plans to launch Spotify as an iPhone app is one of the more lucrative aspects of entering the American market. Spotify is currently in invitation-only beta.

[via: Financial Times]