Spotify is Coming to the iPhone

SpotiphoneThe industry rumour mills have been red hot over the last few weeks, covering the will-they-won’t-they submission of the Spotify iPhone Application to the iTunes Music Store. Well, the news just out is that is has been approved, and it’s fair to say a lot of people are very pleased indeed.

Concerns were raised over whether Apple would approve the new application, given it has the potential to cannibalise the iTunes Store music purchase model (as we wrote about sometime last year) and given the ongoing (and somewhat mysterious) spat over the Google Voice application. However, it looks like those fears are unfounded as approval has been granted.

What’s interesting about the decision, and what we think people will realise, is that the potential loss in iTunes revenue is only a single piece of the puzzle – there are in fact a number of economic considerations for Apple:

  1. The Spotify App will influence consumers’ decision to purchase an iPhone: more iPhones sold = more product revenue and more subscription share from the networks.
  2. More iPhone owners may well lead to more Apple owners in general.
  3. Apple may use their relationships with Record Labels to build on the service offered by Spotify. In fact, there are already a number of iTunes tracks on offer through the service.

The way we see it, this is just another super-savvy decision on the part of Apple – all credit to them.

Spotify – the iTunes Killer and new advertising platform in one?

Spotify Logo

In the past I’ve been a bit of a die-hard when it comes to digital music. Although I’m a huge fan of iTunes and I’m on my second iPod, thus far I’ve been a little resistant to purchasing digital-only music. I have purchased a couple of iTunes plus albums, but apart from that everything in my collection has been ripped from CDs I’ve bought. Why am I boring you with this background? Well, I was recently introduced to Spotify and I think it might have completely turned my attitude to digital music upside-down. And, if it’s done that to me, chances are it will do the same for thousands, if not millions of other music-lovers.

But why? It totally removes the need for an on-disk music library. It has the potential to be an iTunes killer, and an Amazon MP3 killer, and in fact the death knell for any other download-based music service you’d care to mention. By eschewing the traditional model of downloading tracks to your PC or Mac, Spotify streams the music to you, on demand. Unlike the other ‘iTunes Killers’ that aim to replace the desktop application and/or  subvert DRM, Spotify totally changes eliminates the music-ownership model.

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