With its new funding round, Spotify will compete directly with Apple and Pandora. In my last post, I purposefully did not mention Spotify as they were not available in the U.S. market, nor did they have the funding to compete – but now they do. Apple will have their hands full once Spotify and Pandora ramp things up in the next 6 months.
There is no doubt that the future of music will be subscription vs. ownership. One could argue that Apple really doesn’t care about ‘owning’ access to music via iTunes and that it only created this marketplace in order for them to sell more hardware. Amazon is the one most vulnerable, as it does not own the hardware and has no plans for subscription services.
Either way, the economics of the music business will continue to shift in a very big way.