“Facebook and Spotify to integrate social network and streaming music service”
According to Forbes Magazine, Facebook and Spotify have agreed on a joint music-streaming service that could be launched within two weeks. It is said the integrated service of music streaming within the social network will be tested this week. Combining Facebook with Spotify will create many fun options for users of the social network.
Users will be able to play music from Spotify’s library of millions of songs through Facebook. The service could include a function that lets Facebook users listen to music simultaneously with their friends over the social network.
This partnership is a strong indication of Facebooks ambition to become the Internets most important media hub. As we reported on this site last March, Facebook has allready held tests with movie streaming. Warner Bros. announced it would make movies available to stream and rent through Facebook using Facebook credits.
There have been no reports of money involved in this deal. However, the benefits to both are immense: Facebook gets the music streaming service it has wanted for years. With this they can keep their users even more tied to their confined environment, as people will be less likely to serve to other websites to browse for music. Spotify will literally reach millions of extra users. Offering them a free preview of their service will undoubtedly lead to tonnes of extra paying customers.
Spotify’s challenge untill now has been raising money through advertising and premium subscriptions, to offset the costs of royalty streaming payments to the big four music labels: Sony BMG, Universal Music, Warner Music and EMI. Facebook is obviously an advertising expert. Hopping onto the platform of Facebook should also significantly boost Spotify's chances of picking up more paid-for subscribers. The partnership with Facebook also creates a solid platform for expanding Spotify to other countries, for example the United States: a market that has been out of Spotify’s reach….until now.
Source: Forbes Magazine
Comments(2)
MosesAvalon.com
Are you F-ing serious?!?! The money FB pays labels for licensing is pennies compared to what they take in on advertizing.
However I do agree that this alliance, if it works will generate massive new revenue for the lables and aritsts.
But, the danger is also there that we could see a form of music locker-ing, where by one user creates a sort of radio station that atracts 1000s of FB fans. Now imagine hundreds of such "stations." Now imagine a "sharing" of playlits and access to the cloud or locker where the files are stored. How will valuation of the content change then? Stay tuned.
Peter
thanks for your reply Moses, you point out some interesting ideas. merging FB and spotify will indeed create a new and probably big podium for artists - and advertisers. i can also imagine more secluded or 'walled' communities for streaming music will emerge, as it is in facebook's interest to keep users hooked to the social network.
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