Record labels delay U.S. launch of Spotify

The launch of popular music streaming service Spotify has already been delayed once in the U.S.A., and now it may be delayed even more due to the record labels not liking the business model.

Spotify is a music streaming service that has taken Europe by storm, and while it looks like it is ready for its debut in the United States, the record labels are holding it up due to concerns over the business model.

According to the Financial Times, three of the four major record labels in the U.S. have told Spotify they are concerned over the number of users that will convert from the free, ad-supported streaming model to the subscription system.  The labels are convinced that the ad revenue system simply doesn’t work, but Spotify has told them the ads are tied directly into the system that calculates a user’s mood based on the beats per minute of the songs they are listening to.  Thus far, this system has delivered click through rates of 6 to 7 percent, much higher than the usual average.

There is no word when the record labels will finally give permission for Spotify to launch in the U.S., but it will hopefully be soon.

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