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No Spotify 2010 US Launch Says CEO

Popular European music streaming service Spotify will not be launching in the US this year as the company is yet to negotiate licences from American music labels.

Speaking at Wall Street Journal's Dive Into Mobile event, Spotify CEO and founder Daniel Ek said that he could not commit to a 2010 launch.

The company is yet to conclude year long talks with US record companies as they are willing to bank on a model that allows users to stream unlimited music for a paltry monthly fee. They are also afraid that it would harm existing revenue streams such as iTunes, tech news site Cnet reports.

Spotify has been unable to convey to music labels exactly how they will be compensated if they provide the licenses for streaming their music.

At the WSJ event, Ek said that the service now had 750,000 paying users, up from 320,000 a year ago. Over all, Spotify has 10 million users in Europe with a good number still using its ad supported free version.