Spotify pushing labels to lower costs, open up free service to phones | The Verge - 0 views
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Spotify, the popular music subscription service, is due to meet in the coming weeks with its major counterparts in the record industry to renew their licensing agreements. The Verge has learned that managers at Spotify are expected to ask for substantial price breaks from the music labels as well as the rights to extend its free pricing tier to mobile devices.
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The Stockholm-based Spotify has already started negotiations with Warner Music and will begin talks with Sony and Universal in the coming weeks, according to several music industry sources. (A Spotify spokesperson declined to comment on this story.) These negotiations with music’s "big three" labels will likely go a long way to determining whether Spotify reaches profitability, a crucial threshold as it increasingly competes with Apple and other cash-rich players in the digital music market.