From The Wall Street Journal:
South Korea’s Samsung Electronics Co. 005930.SE -1.58%struck a deal with Anglo-Swedish music-streaming service Spotify Ltd. that will allow direct streaming of music from Samsung television sets.
The deal will give Samsung a new way to promote its televisions; Spotify, meanwhile, hopes the arrangement offers a new incentive for consumers to pay for its subscription service rather than use its advertising-backed, free-of-charge offering.
Users will need a paid premium subscription membership to access Spotify through Samsung televisions.
The partnership, announced Wednesday, comes as a number of technology companies are positioning themselves in the growing music-streaming market. Digital-music sales, including both streaming and downloads, are expected to soon overtake sales of physical CDs as the main source of revenue for music labels and publishers.
.Spotify’s rivals include U.S.-based streaming services such as Rhapsody, Rdio Inc. and Pandora Media Inc., P -0.74%as well as France’s Deezer and Norway’s Wimp. Another digital-music competitor is Apple Inc.’s AAPL -1.12%iTunes, although it doesn’t offer a streaming service.
Persuading consumers to pay for its subscription service is increasingly important for Spotify because advertising sales growth for its free services is slowing, according to the accounts of its holding company, Luxembourg-based entity Spotify Technologies SA.
To enable music to stream from Spotify, Samsung E-series television sets will be equipped with a software application adapted for television screens.
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