Spotify Makes Its Landing State-Side: So Now What?

The world of online music streaming just got a little more crowded here in the United States. Spotify has become available as of today, and their press release makes it clear that they intend to gun for a share of the marketplace that sites like Pandora, last.fm and Slacker currently occupy. The press release even alludes to some features of the service that even make Apple's iCloud seem to be playing catch-up rather than innovating.

What is Spotify?

Already the largest source of revenue for European music entities, Spotify isn't exactly the new kid on the block internationally. The site already enjoys quite a toe-hold across the pond actually. When examining what the site offers, it's actually not hard to understand why. For instance, like the iCloud, Spotify gives its customers the chance to upload their current library of MP3 files to Spotify, further customizing the listening experience.

Built as much like a social networking platform as a content delivery service, Spotify has features that allow users to share their playlist across the Internet. Apps for the Android and Apple's iOS allow Spotify to sit right next to its competitors on your favorite mobile devices. According to their press release it's extremely simple to create, maintain and share your any custom playlist you've created with your friends on Facebook and Twitter.

Spotify offers three levels of service ranging from free (with ads) to a $9.99 per month iteration that gets you all their bells and whistles. That ten dollars a month will get you unlimited access both online and offline, access to exlcusive content and higher sound quality levels. Their intermediate product is roughly half of their premium service, just $4.99 a month. For that price point you get all the standard features, but without any advertising.

Spotify's Potential Impact

Spotify's entrance into the United States is yet another stake through the heart of the old system of record labels and radio stations. While terrestrial radio stations could claim that their content is free and therefore superior, modern consumers seem willing to spend moderately if it means they don't listen to commercials and they can act as the program directors of their own stations. If there's one thing American consumers love, it's customization. From hot rods to the cases they put around their cell phones, everyone wants to feel as unique as possible.

One potential outcome could also be any impact on satellite radio. Already the need for expensive satellite receivers and equipment has been circumvented thanks to the increasing availability of broadband and mobile broadband Internet. In the final analysis it could be a simple matter of content. Whoever can afford to pay the most for the best content for their subscribers could dictate who comes out on top. If top talent like Howard Stern ever decided to retire or jump ship to Internet Radio, that could be quite a "game-changer" for instance.

Whether or not it will be Spotify, it seems clear that Internet streaming, once the scourge of the music industry is more and more becoming its salvation. Finding ways to monetize and maximize their profit margins will pull more and more record executives squarely into the camp of those that find streaming content to be the best solution presented to date. Spotify's beta service is further evidence of an opening market that seems ready to truly take off.