Spotify Submits “killer” iPhone App
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Will Apple approve an app from the “iTunes killer” Spotify?
The free music streaming sensation Spotify is planning its most ambitious move yet on the music scene, an App Store application for Apple’s iPhone.
Spotify was set up by two Swedish entrepreneurs in Stockholm three years ago and went live last year in the UK. Only in recent months has the music site being enjoying a more mainstream spot in the media in a similar explosion of popularity as micro-blogging site Twitter.
The beauty of Spotify is that, like Twitter, it offers an intuitive, free service through the internet which is eminently usable. Unlike Twitter, Spotify has a clear business strategy and has no qualms about incorporating advertising into its business model to generate revenue.
Spotify has been branded as a potential “iTunes killer”, and is a real threat to Apple’s online music store. After all, why would you download music for money when you can stream it for free with virtually zero buffering time? Sure you have to listen to 60 seconds of adverts every 30 minutes, but people are willing to endure this minor hardship for free music.
Spotify submitted an app for iPhone to Apple today which creates an interesting problem for Apple. If the company chooses to approve the Spotify App, they are sure to generate revenue from downloads, but at the same time will lose revenue from fewer iTunes downloads.
Apple could of course reject the Spotify App, but that is unlikely to prevent users from accessing Spotify directly through their iPhone; and you can bet it won’t be too long before a rival app store approves a Spotify App, dragging customers away from Apple’s App Store.
With six million users in Europe, and more anticipated in the US when Spotify launches there later this year, having a first mover advantage could be key to ensnaring the future music audiences online. Apple have a tough decision to make, we expect a decision in the next couple of days.
Will you still use iTunes if the Spotify App is approved? Write your comments below!
