Spotify, the Swedish/London based online music service is soon to open its doors to the US.
During a recent visit to the States, co-founder Daniel Ek told the Guardian he was there to hire employees and on the lookout for office space for a launch during the 3rd of 4th quarter of this year.
Interestingly however the company does not expect to make a profit this year, and by the sounds of “it may be next year”, 2010 isn’t a certainty either. Ek is however confident about Spotify’s financial progress and ability to extend the European licensing rights into the US:
“Why would I go to the US and try to get more extensive licences if I had trouble covering our costs in Europe?” And regarding Music licensing rights…”Most of our deals are done from the US anyway so I speak to these people on a weekly basis – I know them, I know their numbers, I know their wives’ names.”
Despite reports that in an effort to raise investment the company has valued itself at £200 million, Ek is keen to point out he is setting his sights on a much higher future valuation
“If someone’s willing to pay £200m for it, that’s what it’s worth. But would I sell the business for £200m? The answer is no,…If it’s done right, this could be a billion-dollar company.”
Spotify is unlikely to embark on a massive marketing campaign in the US, hoping that through word of mouth, particularly via Twitter, the company will find a way of breaking the States.
Their much demanded mobile service is also reportedly due at some point this summer, with Android and iPhone video demo’s already spotted in the wild. Spotify also has just collaborated with music download site 7digital to offer one-click downloads.
The company has an incredible 9 million users over the UK, Germany, France, Italy, Spain, Finland, Norway and Sweden.