Spotify Launches Competition for iTunes: Does it Match Up?

This week, Spotify launched a new music download service with the goal of making Spotify “the only music player you’ll ever need.”

Spotify users (which are currently exclusive to outside the U.S) can now purchase and download full playlists comprised of any songs from the company’s 9 million-track catalog for as low as 60 cents per song.

All of this centers around a new feature allowing playlists to be synchronized with the iPod classic, iPod nano or iPod shuffle right from within Spotify’s desktop application.

Spotify still isn’t available in the United States. However, rumors are circulating that the company is quite close to contracting with record companies that will allow it to launch in the U.S sooner than later.

In addition to launching a plethora of new features, a mobile app was released for iPhone and Android. This allows for wireless syncing of your MP3 playlists in Spotify from your computer to your phone. The company also claims that “it’s now possible to wirelessly sync these playlists to your iPod Touch.”

Will Spotify, with all of its new additions, improvements and features, be able to compete with iTunes? From a marketing standpoint, no, but Spotify can easily win over iTunes enthusiasts with cheaper songs and better prices.

For example, Microsoft’s Zune didn’t exactly become a legitimate contender for the top MP3 player prize, but that’s because its hardware underperformed. The Zune Marketplace has drawn many potential iTunes users thanks to its convenient pricing plans ($15/month).

At about 60 cents per song, Spotify will have a seat at the ‘iTunes competitor’ table and may find success with the help of comparative advantage and smart innovation.

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Via: Boy Genius Report