[JAVagueArgument]

I don't know for sure, but I am fairly confident that the creators had the right contacts in the industry, and they started in the EU, so might have been an easier place to gain ground slow but steady (although I believe they made a massive loss last year).

I was one of the early beta users of Spotify and I recall at the time their collection was sparse for modern popular music, but they constantly added more labels and built up their collection slow but steady.

Finally, they added a tie in with Facebook so it had a social side right away, and most importantly, originally it was unlimited and free which brought in masses of users, and big advertisers like Burger King.

Then eventually they cycled back to a free limited free and added another subscription level which was half the full €10 a month.

Having had it free for over a year, instead of complaining I signed up and am now a full subscriber.

HTH.

[Apocryphon]

Thanks! Another question I have is why is it finally hitting the U.S. now? It seems like it's taken almost a decade for a big "unlimited music streaming" type service to reach critical mass (which Spotify seems to be on its way to achieving in the States).

[JAVagueArgument]

It is only hitting the U.S. now because, like many companies, they built a following in a smaller area first. They then used that to get record companies hooked as a small start up. The more they grew the more back catalogues and even indie artists got on board with them.

So now they have a proven platform, architecture and refined client and importantly a tested price model (like I said it has changed frequently to find the right form). So they felt ready to move to the US where there is a much larger audience. I believe they also secured a big investment to help too.

Add into that, the EU and UK do not have software patents, so it is much easier to make software over here than in the US. So of course as soon as Spotify go to the US they are under litigation from the software patent trolls.

As for unlimited music streaming, it used to be Naptsters legal business model a few years ago, but the internet just wasn't fast enough back then and they were blocked as there was only iPod and it had no apps.

Oh and what separates it from Grooveshark, Pandora or We7 you ask? It is their software client, it caches music, for fast access and less streaming, it can be used offline, and they have mobile versions for the $10 subs. HTH