Will Spotify pull the pirates in out from the dark?

Originating in sunny Sweden, Spotify has gradually been launching around the globe and now finally has kicked off in Aus. Spotify is a bit different to other online music distro models. Their mission - to give you 'all the music, all the time'. Unlike iTunes, its based on a monthly subscription fee rather than purchases of individual albums or songs. With the subscription you can listen 'on demand' to whatever music you like in the Spotify catalogue. If you don't subscribe, you get adverts though.

To use Spotify you need the app. Its available on most devices and heavily integrated into Facebook giving easy single sign on and enabling users to easily see what their other friends are playing.

So it is good? Well for starters the application is decent. It is not a gargantuan of functions and clutter like iTunes. As an avid fan of good ole Winamp 2.91 - which offers a no b/s solution to playing your mp3s - this is not bad. It is much quicker than iTunes and you can navigate through music fairly easily. I haven't gone that far into things, but first impressions are good.

On the music side, there is plenty to listen to. You can either search for tracks, play what your friends have just played, or listen to the defined playlists or the radio stations.

And the business model? Well time will tell. Spotify haven't reported a profit yet, but they're certainly negotiating plenty of contracts with record labels, to provide content for consumers, and media corporations to get the brand out. Coupled with endorsements from Mark Zuckerberg, and the growing EU and US popularity, they definitely seem confident in their model and have an expansionary mindset.

Will this be the digital music model to pull the pirates out from the dark into the world of commerce? I think its certainly making things easier for consumers. The financials will tell the real story as we see more figures over the next couple years.

The big question at the moment however for me, is how much money is going back to the artists. 1/3 of a cent per song played from one article I read - so not much it seems. For more info on that check out Andrew Harris' excellent article over on Technology Spectator. In terms of an effective new business model for the music industry, here is my summary:

1. Consumers:  Easy access to music, not a high $ per month fee. Pass
2. Labels: Big $$ for Spotify access to their current and back catalogues. Pass
3. Bands: Earning way less than on iTunes - or busking in Rundle Mall. Fail

This is why you won't find the latest Coldplay, Adele, The Black Keys and Tom Waits releases on Spotify. Clearly some work to do.

The digital music market continues to evolve. Good luck Spotify.