Popular music streaming service Spotify has reportedly signed a deal with major US music label Universal Music.
According to a report by CNET (opens in new tab), the company inked a deal with the world’s largest music company after months of negotiations.
Now, Spotify has music distribution deals in place with three of the top four music labels in the US indicating that the service is on its way to be launched in the United States. Spotify has already signed deals with Sony Music Entertainment and EMI Music. Among themselves, the three music labels cover 70 percent of the US music market. Sources told Reuters that the deal was signed around two weeks ago.
The service has been immensely popular in Europe, thanks to its intuitive user interface and decent subscription rates. In Europe, Spotify has more than 10 million customers but only one million of them are paying customers.
Spotify has gained huge popularity due to its ad-supported freemium version that lets users access a limited hours worth of songs every month from free. The company is likely to charge $10 month per month for its subscription contract based on its prices in Europe.