updated 09:40 am EDT, Thu April 26, 2012
Spotify may compete with Pandora, Slacker
Spotify might be gearing up a more formal Internet radio option, a pair of sources claimed Thursday. While it already has basic radio features, the new method outlined to Bloomberg would be more akin to one like at Pandora or Slacker, where explicitly labeling it as radio would get government-regulated lower royalty rates. The method would also purportedly get it access to artists that normally wouldn't sign for the usual on-demand Spotify system.
Among the artists who have at least temporarily held off have included Adele and Coldplay. While either has had some tracks on Spotify, they have often shied away from offering their full or most recent content over worries they would get much lower royalties than at a pay-to-own store like iTunes or Amazon MP3.
As proposed, the service would potentially go live by the end of 2012. Some partners reportedly knew of the plans. Spotify wouldn't confirm or deny the plans.
Spotify has been in a rush to keep labels happy, even after launching successfully in the US. Although it has over 10 million listeners, only three million of those are paying and give artists more than a small amount of ad revenue. The company has lately turned to ad deals to improve its profitability and possibly the payout for artists.