Apple Resisting U.S. Spotify Launch

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The Internet streaming music service Spotify is hoping to finally launch in the United States by the end of the year and has set a December 31, 2010, deadline for itself. While popular in Europe, the service is facing several hurdles in the U.S., including resistance from Apple, according to CNET.

Spotify in the U.S.? Well, maybe.

The Spotify team is negotiating with Universal Music Group, Sony Music Entertainment, Warner Music Group, and EMI Music, although there aren’t any deals in place yet — and the company may have troubles landing those deals. Apple has apparently been telling the record labels that Spotify’s ad-based free music streaming service could further erode lackluster CD sales, and Warner Music Group CEO Edgar Bronfman Jr. doesn’t think ad-based services are worth the trouble any more.

Insiders think Apple may also be concerned about the impact Spotify could have on its own rumored music streaming service. Reports have been circulating that the company is working on developing a cloud-based service where iTunes users could store their music libraries, along with a streaming music subscription service.

Despite Apple’s resistance, along with the apparent lackluster reception record labels are giving Spotify, consumers in the U.S. have been waiting for the service ever since it launched overseas. Those hopes, however, may be dashed yet again by the end of the year.

“Free streaming services are clearly not net positive for the industry,” Mr. Bronfman said. “As far as Warner Music is concerned [they] will not be licensed.”

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