Google might have found an answer to the iPhone, but the company still does not have a warrior to take on iTunes. It is probably that argument that has made Google strike a deal with Spotify, an European startup that lets you stream music.
This is what we know for now – A Spotify app built for Android 2.1 will be provided along with the Nexus One that goes on sale from January 5 (That’s tomorrow!).
Spotify isn’t presently available in the US since the company is in discussions with the various labels over pricing. But from what TechCrunch reports, Google might be shelling out the monthly cost of $3-$4 per Nexus One user. We are not sure why Google is that desperate, but apparently that is how it is.
“Google wanted Spotify badly enough that they were willing to cover the label costs for every user of $3 – $4 per month. Spotify would add advertising on top of it, as they do with the free version in Europe, to make additional revenue. Without Google paying those label fees there was no way Spotify could handle the costs of the user flow that 2.1 would provide. Currently, European users must pay for Spotify Premium to use the mobile versions of the service.”
The deal is still unconfirmed. It is either that this deal was made several days ago but was kept in the dark or that late minute discussions have not yielded any results. Otherwise, it is unlikely that such a last minute inclusion could be made to the handsets.
What do you think?[via TechCrunch]