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Why Spotify is about to get big

Posted by Danny Whatmough on 26th August 2009

Spotify has well and truly become the new darling of the new media world and with it’s US launch slated for Q3 or Q4 2009, it is just about to get a whole lot bigger!

And two news stories out today suggests that the future looks even brighter for the music streaming service.

Firstly, there are rumours that Apple has finally approved the long awaited Spotify iPhone app (see video above). Why is this important? Well, it really adds the finishing touch to the Spotify proposition.

And, if it is true that users will have to be premium subscribers to use the application, then it will also be a very important part of the company’s business model and profitability efforts.

The second story doing the rounds today is equally as interesting, if slightly less accurate in terms of concrete facts!

Writing on Trusted Reviews, Gordon Kelly cites rumours from Techcrunch suggesting that Facebook is looking to acquire the service:

“We’ve heard that Facebook has been talking with the European startup about a partnership for well over a year (about the time the Facebook music rumors heated up), but that the talks have intensified dramatically in the last week.”

Now a link up between these two companies makes perfect sense. Facebook has always lost out in the music stakes to Myspace and a strategic acquisition like this would radically change that. This could also be seen as a move against Apple and iTunes, which is even more interesting when you consider that Apple is just about to approve the Spotify app.

After the Friendfeed acquisition earlier this month, it seems that Facebook is taking steps to assert its authority and acquiring Spotify would be a massive statement of intent. Valuing the Swedish music startup might prove tricky however.

Danny Whatmough