Spotify Looking For North American Release [Report]

In 2009 European music service Spotify lost $26.7 million, while 2010 numbers have not yet been revealed, it looks like the company may be poising themselves to try their luck in the U.S. as they attempt to bring their music streaming service stateside.

The New York Post is reporting that two music-industry sources believe the company is “very close” to a deal with Sony Music and at least one other major label for releasing their technology in North America.

If a deal is in the works, both company’s are remaining mum on the details, refusing to comment on the state of their negotiations.

The biggest issue Spotify has ran into thus far is the lack of consideration for their “freemium model” which has forced labels to ask for high cash advances for the rights to their music catalogs, high numbers that Spotify refuses to pay.

If you are unfamiliar with Spotify, they offer a freemium service which provides unlimited free music to listeners with ads attached to their music, while paying customers receive ad-free spots. The issue at the center of the debate is whether customers in the U.S. would be willing to pay for music or stick with free unlimited songs option with ads attached.

In any case, we will wait with baited breath to see if anything manages to come from this service in the states.