Even In Utero, iCloud Is Killing Spotify

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U.S. record labels are dragging their feet in negotiations to bring music streaming service Spotify to American shores, a move reportedly aimed at give Apple a first crack at a similar subscription plan.

To stall for time, recording labels are demanding too much for licensing, according to Eliot Van Buskirk at Evolver.fm, citing “a well-connected source.”

Earlier today, we reported Apple’s unannounced iCloud music streaming service would give labels a new subscription revenue stream to replace the aging CD and digital sales.

The service would upload your iTunes collection to Apple’s servers, replacing some tracks with better-quality versions, according to BusinessWeek.

Observers see iCloud taking on the shape of a more expansive cloud-based alternative to the already-existing digital lockers announced by Google and Amazon.

The iCloud framework appears to follow a similar service from Lala, a streaming music service the Cupertino, Calif. firm acquired in 2010.

What would be your choice for music streaming? Apple’s iCloud which mirrors your iTunes collection or Spotify’s subscription-based service allowing you to listen to anything you want?