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Blog

Spotify changes the rules for online music

04-03-2009

by Ralph Averbuch

Spotify represents a real threat to the established players attempting to create viable business models for selling music online.Spotify. It's yet another digital age brand that hasn't made much impact... yet. But it's a name that's likely to gain a lot of recognition as people discover what's on offer. Spotify is a legal Swedish-developed music streaming program allowing instant listening to tracks or albums. Music can be browsed or searched and it looks a little like a stripped down iTunes. Although you can't save the streamed music, you can link to allow you to purchase via retailers or send links of your favourite tracks, or your personally constructed playlists, to friends. Whilst there are paid versions, even the free package is very well appointed, with access to a rapidly growing library, full of contemporary and classic releases. The free version currently offers up occasional audio and banner ads within the application. So what makes this worthy of mention? Loads of sites offer music and iTunes currently dominates the landscape. Well because it's Spotify who's finally recognised that the power of music is not just in the listening, but also in the sharing. Spotify's playlists are yesterday's mix-tapes re-made for the 21st century. The community aspects to the service will ensure that it spreads fast as friends acquire the app and share each other's musical tastes. In fact since its recent beta launch it's already claiming over one million subscribers. Yes Last.fm can do much of this now, but Spotify takes it to a new level, playing to all the strengths that the Web can offer for viral growth. It seems likely that Spotify will do that thing which leaves senior execs in a cold sweat at night and disrupts the established order. iTunes, look out... or buy out.


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