By Tim Maytom
Spotify is preparing to announce it has been acquired for upwards of $14bn (£9.4bn) next week, with signatures and final approvals ‘exceptionally close’ according to a source familiar with the deal.
The acquisition, reported by Digital Music News, could represent a significant shift in Spotify’s business model and relationship with major recording labels, with the CEOs of both Sony Music Entertainment and Universal Music Group placing the service under heavy pressure to eliminate its free access tier.
The shift in philosophy will come as part of a three-way deal with representatives of major music labels and YouTube and its various music properties, and may result in YouTube removing its free music videos at the same time as Spotify closes its free streaming service.
The move will represent a unilateral shift away from the free streaming culture which has grown over the past decade, and force millions of Spotify and YouTube listeners to either pay subscriptions or search elsewhere for free music.
If the deal goes through as reported, it could net Spotify millions in new subscriber revenue, but may also be a boon for rival services that still offer free streaming as users flee to avoid high charges, or even …read more
Source:: Mobile App News