Spotify to launch radio service - Rumour

30 Nov 11Shona Ghosh

Spotify may launch its own radio service which could potentially threaten existing services such as we7, Pandora or Clear Channel. Sources speaking to StrategyEye suggest that Spotify will offer up its own radio service in a bid to widen its appeal to the US market, where radio remains a hugely popular format for music. Though Spotify currently offers what it calls ‘artist radio', it does not stream individual channels under a relevant license. A radio service may also make financial sense for Spotify, as the relevant licensing would come to a fraction of its streaming costs. While moving into radio could make sense, the move would have implications for services such as Pandora, whose CEO has so far insisted that Spotify is not a competitor.

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Spotify says it will announce a "new direction" at its first press conference today, with further speculation that it may also open its API to commercial developers. If true, this would enable developers to build and sell apps that make use of Spotify's 15m-strong catalogue of songs, where currently most must offer them for free.


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