Spotify Signs On EMI for U.S. Launch. At Least One More to Go...
Both EMI and Spotify declined to comment. — Coupled with last month's Sony deal, Spotify now has the approval …
Context & Ripple Effects
Spotify's long-delayed U.S. entry is being cleared deal by deal. Under pressure over the stalled American launch since late 2010, it landed Sony in January 2011, and EMI is now the second major on board — though both companies declined to comment on the terms.
The significance is sequencing rather than surprise: each signature converts a potential blocker into a partner, but the confirmed picture still shows at least one major label withholding approval, which keeps Spotify's U.S. timetable hostage to the next negotiation.
First-order effects
- EMI joins Sony as a licensed major for Spotify's U.S. push, leaving the service one major-label approval short of the clearance it needs to launch.
- Both Spotify and EMI staying silent on terms keeps the deal structure — and any equity or advance arrangements — out of public view while negotiations with the remaining label continue.
Second-order effects
- The unsigned major becomes the last gatekeeper, gaining leverage to extract richer terms than Sony and EMI accepted, since Spotify cannot enter the U.S. without it.
- Each completed deal raises the pressure on the holdout to settle on comparable terms or risk launching Spotify's U.S. service without its catalog — a competitive disadvantage for the label if rivals' music is available.
Third-order effects
- If the pattern holds, major-label sign-off becomes the structural chokepoint for any foreign streaming service entering the U.S., with catalog access granted sequentially and pricing power concentrated in whichever label signs last.
- The one-by-one negotiation model pushes labels toward coordinated de facto standard-setting over how subscription services are licensed in the American market.
The trend: Streaming services seeking U.S. scale are clearing major-label licensing hurdles one signature at a time, with the final holdout holding outsized negotiating power.