Spotify and Facebook Partner Up for New Music Service

Facebook and Spotify are gearing up to partner in a new venture; one that will assumedly put Spotify squarely on everyone's Facebook feeds.

Spotify has been fairly well received over in Europe, where it was initially launched. The on-line music streaming site is currently in negotiations with record labels to get permission to operate within the United States. Until those negotiations are completed, any new venture with Facebook would have to be released in those geographical locations that Spotify is currently licensed to operate in. This of course is the first big hurdle the new Facebook/Spotify application will have to jump. Undoubtedly Facebook's biggest foothold is in the U.S. so until Spotify can operate there, the reach would be limited at best.

Not much is known at this time about what the integration will entail, however it's generally assumed that the main functionality will be to allow users to listen to music directly from their Facebook feeds. The genius behind this for Facebook is that it helps keep its users on their website, viewing their advertisers' ads. For Spotify of course the victory is in being planted squarely on the world's largest and most popular social networking site. It would seem that any service who can get that close a relationship with Facebook would benefit greatly from it.

On-line radio stations are popping up more and more though, and the question will have to be answered is "Will Facebook users abandon their accounts with Pandora or Slacker to simply use Spotify with Facebook?" The answers will likely depend on what kind of features the integration offers, and of course any subscription fees. All streaming services must have the ability to "tailor" the listening experience by genre, artist or even a specific song. Spotify's application will need to carry at least these basic services in order to compete.

Ultimately, given Facebook's giant market share, it seems to be a win-win situation for both Facebook and Spotify. If Spotify was already in the process of coming to the U.S., this move will help them make an immediate impact, potentially vaulting them right over their competitors. Unless and until Twitter signs on with Pandora or Slacker or last.fm, Spotify will have the best and only real social networking tie-in of all the on-line radio sites.

This new partnership could even be seen as a lift for record labels. The marketing penetration of their artists' material is almost unbeatable if it can be shoveled right into consumers' social network pages. An industry on the brink of major change, this could be a big step in the right direction towards survival and ultimately renewed success, provided the labels actually embrace this venture and push content to it in terms of exclusive tracks and promotions. The labels would do well to seize this opportunity and push its success as part and parcel of their own.