Spotify Could Be a Contender for iTunes in US by Year-end

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mainscreen_circle-200x.jpgApple’s iTunes – the only online music distributor that matters, according to one well-placed music lawyer – may get additional competition before year-end, if an exclusive Wired report published Monday proves accurate.

Spotify, a music service boasting over 6 million songs that can be accessed on-demand and customized into personalized, editable, downloadable playlists, is currently available only in Europe but the company is feverishly working to sign distribution agreements with copyright holders and music labels to bring both a desktop and an iPhone application to American consumers as soon as possible, according to the report.

Spotify’s potential to compete with iTunes in the US remains speculative at this point, and the company understands that despite having created a slick iPhone app to which Wired writer Eliot Van Buskirk gives rave pre-release reviews, Apple could put the kibosh on the whole thing if it determines Spotify “replicates functionality” provided by Apple’s native iTunes application. “It’s going to be very interesting to see if Apple lets this through or sees us as competition — fingers crossed,” explained Spotify communications manager Jim Butcher.

Whether or not the iPhone app is approved, when the company gets its US distribution agreements in order it seems likely that many will check out some of the interesting features the desktop service will have to offer, such as the ability to stream playlists created by other Spotify members and to access an ad-free version of the service with a premium account.

It will be interesting, too, to see how Spotify differs from and compares with Lala, another iTunes competitor with great potential already available in the US.

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