Wednesday, May 25, 2011

Facebook Partners With Spotify For Blockbuster Deal

Forbes Magazine is reporting the Facebook has partnered with Spotify on a music-streaming service that could be launched in as little as two weeks, a deal that could have a huge effect on the music industry.

According to the article, "Clicking on the Spotify icon will install the service on their desktop in the background, and also allow users to play from Spotify’s library of millions of songs through Facebook. The service will include a function that lets Facebook users listen to music simultaneously with their friends over the social network, one of the sources said."

The partnership is a win-win for both services. Facebook gets the music app that it's long wanted, and Spotify gets exposure to a huge audience. Although there's no money changing hands and Spotify won't be seeing any of Facebook's ad revenue, it does give them a chance to upsell their Facebook users to their premium service, which is what they really need to prosper. Spotify is currently a free service but limits users to just 10 hours a month. The premium service is currently 10 pounds in the UK and 10 euros in the rest of Europe.

Want to know the downside? It still won't be available in the US until Spotify finishes up it's license talks with the labels, although that's rumored to be coming soon. When that happens, this deal will be a game-changer.

Read the entire Forbes article.
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