CNET noted that Apple Executives have been trying to convince music execs that Spotify will remove some the demand for paid music (it will) from iTunes and Amazon. That, in turn will directly hit their bottom line. Spotify has set a Dec 31st 2010. "Spotify will be part of Microsoft's Windows Phone 7 release on Oct. 11 revived industry chatter.
Spotify is a European music service that has yet to launch in the US. The company's stumbling block has been its free ad-supported streaming music business model as the record labels prefer a paid subscription model."
Apple executives have expressed concern to the labels that a free music service here could undercut already lackluster download sales; at least one label chief, Edgar Bronfman Jr., chairman and CEO of Warner Music Group, has lost confidence in ad-supported models.
NYT reports, that "Apple's talking with major record labels about a subscription music service that would give customers unlimited access to songs for a monthly fee. One source said the service could have tiered pricing ranging from $10 to $15, although there are issues to be ironed out, including how much music would be included in each tier and how long consumers would be able to access that content."