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Spotify Announces Licensing Deals and Upcoming Launch

STOCKHOLM, October 7 /PRNewswire/ --

- Innovative Subscription and Ad-Supported Music Streaming Service Unveiled

- All Four Music Majors and Leading Independents on Board

Spotify announces a series of licensing deals with music companies including Universal Music Group, Sony BMG, EMI Music, Warner Music Group, Merlin and The Orchard for their content to be included in the new digital music service. Spotify offers instant access to a world of music via a service that enables on-demand streaming of audio content.

Spotify users will have unlimited access to millions of tracks from a vast music catalogue, with the opportunity to create and share playlists with each other and explore music through a wide range of discovery and social features.

Spotify will launch on October 7th 2008 in UK, Germany, France, Italy, Spain, Finland, Norway and Sweden. Throughout the remainder of this year and into 2009 Spotify will be rolled out to further markets. Spotify will be marketed both as a premium monthly subscription service and a version which is free for consumers to use and supported by advertising. Consumers will also have the option to purchase a day pass that gives access to Spotify without advertising. Advertisers that have signed up to be included from the launch include Ford, T-Mobile and Xbox.

Daniel Ek, founder and CEO at Spotify says: "We believe that everyone loves music, and we're thrilled to partner with all major content owners already at launch. This is an exciting step forward in our mission to provide the best possible music experience by allowing people to listen to whatever they want, whenever they want."

Rob Wells, Senior Vice President, Digital, Universal Music Group International said: "Subscription streaming services are the future of digital music consumption. Spotify is an excellent consumer experience and Universal Music Group International is delighted to be a part of the launch."

"We are excited to be working with Spotify as they develop this distinctive online destination that will include both ad-supported content as well as quality premium packages," said Ulrich Jaerkel, Senior Vice President, Digital & New Business Development Europe, Sony BMG Music Entertainment. "With such an easy-to-navigate interface and wide variety of music and features for users to enjoy, Spotify promises to be an online fan-favourite."

Stefan Blom, SVP Commercial Development for EMI Music said: "EMI is committed to supporting innovative and user-friendly music services. Spotify is a compelling new way of connecting artists and fans which reflects the shift we are seeing in digital music from a total reliance on a-la-carte services to the addition of new models that provide instant and legal access to our artists' music."

Leanne Sharman, Vice President, Business Development, Warner Music EMEA said: "From launch, Spotify is a wide-ranging, flexible and engaging music experience. By offering a compelling choice of ad-supported and paid-for services, the platform is in a strong position to foster a loyal community of users and attract advertisers. Not only that, Spotify will be a powerful promotional and discovery engine through which our roster of artists can grow their fan-bases."

Charles Caldas, CEO of Merlin said: "We are genuinely excited at the fantastic quality and attention to detail behind the Spotify service and at the innovative business opportunity for our members. We are equally pleased that Spotify quickly recognized the true value that Merlin has brought to the market and has worked hard with us to ensure that the independent labels that constitute our membership are available to their users from day one."

"Spotify says, 'Everyone loves music'. We agree, and voted with our feet by bringing tens of thousands of great artists from all over the world into this innovative new service, which is tailor-made for independent music. Ad-supported music discovery is an exciting future increasingly here today, and we are confident that Spotify will turn people onto our clients' art, and play a role in helping our artists and labels to get paid as they build audiences," said Greg Scholl, president and chief executive officer for The Orchard.

About Spotify

Spotify is an innovative digital music service offering music fans instant access to a world of music. Spotify enables on-demand streaming of audio content and aim to combat music piracy by offering a superior user experience, while monetising licensed content with both an ad-supported, free-to-the-user model and a premium, paid model. Spotify brings fans closer to the music and artists they love, and provides a marketplace for additional products such as live events, music downloads and more.

About Universal Music Group

Universal Music Group is the world's leading music company with wholly owned record operations or licensees in 77 countries. Its businesses also include Universal Music Publishing Group, the industry's leading global music publishing operation. Universal Music Group's record labels include Decca, Deutsche Grammophon, Disa, Emarcy, Fonovisa, Interscope Geffen A&M Records, Island Def Jam Music Group, Lost Highway Records, Machete Music, MCA Nashville, Mercury Nashville, Mercury Records, Philips, Polydor Records, Universal Motown Republic Group, Universal Music Latino, Universal Records South, and Verve Music Group as well as a multitude of record labels owned or distributed by its record company subsidiaries around the world. The Universal Music Group owns the most extensive catalogue of music in the industry, which includes the last 100 years of the world's most popular artists and their recordings. UMG's catalogue is marketed through two distinct divisions, Universal Music Enterprises (in the U.S.) and Universal Strategic Marketing (outside the U.S.). Universal Music Group also includes eLabs, its new media and technologies division; Bravado, its merchandising company; Twenty-First Artists, its full service management division; and Helter Skelter, its live music agency. Universal Music Group is a unit of Vivendi, a global media and communications company.


SONY BMG MUSIC ENTERTAINMENT is a global recorded music company with a roster of current artists that includes a broad array of local artists and international superstars, as well as a vast catalog that comprises some of the most important recordings in history. Sony BMG Music Entertainment is a wholly owned subsidiary of Sony Corporation of America.

About EMI Music

EMI Music is the recorded music division of EMI Group Limited, one of the world's leading music companies. EMI Music represents artists spanning all musical tastes and genres. Its record labels include Angel, Astralwerks, Blue Note, Capitol, Capitol Nashville, EMI Classics, EMI CMG, EMI Records, EMI Televisa Music, Manhattan, Mute, Parlophone and Virgin.

About Warner Music International

Warner Music International (WMI) is Warner Music Group's global (ex-U.S.) recorded music division that markets and distributes WMG's world-class roster of U.S. and international recording artists through a network of affiliates and licensees in more than 50 countries. With a commitment to developing local talent as well as marketing international superstars, WMI leverages its expertise in each region around the world to attract and cultivate a diverse international artist roster. WMG is a pioneer in delivering music content in new and exciting ways, with a track record of 'firsts' in the digital space.

About Merlin

Merlin represents a global set of independent members whose joint rights comprise the most valuable basket of rights outside of the big four labels.Merlin offers rights users the opportunity to license collectively the individually unlicensable by creating a single point of contact for those wishing to license from the vast global output of the independent sector, as well as ensuring its members have effective access to new and emerging revenue streams and that their rights are properly protected. A global organisation, its members' market share in the US alone is over 9%, equivalent to that of the smaller major labels, whilst in Europe member labels released 72% of the top 60 independent albums released in the past three years and commanded a 75% UK market share of the top 75 independent albums in 2007. Merlin's burgeoning membership includes some of the music industry's most iconic labels,including major globally recognised independents such as the Beggars Group , KOCH, Epitaph, Rough Trade, Domino, Cooking Vinyl, Concord, Tommy Boy, Razor & Tie, Saddle Creek, Century Media, Cherry Red, Kitchenware Records and Warp Records. In Europe members include [PIAS] Group , Blanco Y Negro, Edel, Naive, Wagram, Aggro Berlin, !K7, Kontor Records, Ministry of Sound (Germany), SPV and Gazell. Members also include global distributors and aggregators such as IODA, Finetunes, State 51, Shock Entertainment, Virtual Label and Kontor.

About The Orchard(R)

The Orchard (NASDAQ: ORCD) controls and globally distributes more than 1.3 million songs and over 5,000 video titles through hundreds of digital stores (e.g. iTunes, eMusic, Google, Netflix, V CAST) and mobile carriers (e.g. Verizon Wireless, Vodafone, Bell Canada, 3). With operations in 29 regions around the world, The Orchard drives sales for its label, retailer, brand, and agency clients through innovative marketing and promotional campaigns; brand entertainment programs; and film, advertising, gaming and television licensing. A pioneer in digital music and media services, The Orchard fosters creativity and independence. The Orchard is a registered trademark and The Orchard logo is a service mark of Orchard Enterprises NY, Inc. All Rights Reserved.

    Press contact Spotify:

    Sophia Bendz,

    Press contact Universal Music Group International:

    Adam White,
    +44(0)20-7471-5665 (office).

    Press contact Sony BMG Music Entertainment

    Claire von Schilling,

    Press contact EMI Music

    Richard O'Brien,

    Press contact Warner Music International

    Sam Selby,

    Press contact Merlin:

    Charles Caldas.

    Press contact The Orchard

    Deana Graffeo,


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