Spotify and Google teaming up as iTunes competitor for Android 2.1?

European streaming music company Spotify has been having difficulties launching in the U.S. because of tough negotiations with the record labels. The company wants U.S. users to get access to music for free while the labels are screaming, "Show me the money". According to Tech Crunch, a compromise had been reached. The service will be free to users in the U.S., but only a limited number of people will get to use it. Besides this info, the site is confirming something more interesting. Spotify and Google are in talks to work out a deal that would allow the former's Android application to be built into Android 2.1 and launch in the U.S. with the release of the Nexus One. Remember, the N-One is expected to come out of the box wearing the 2.1 build of Google's open source OS on January 5th.

The application is currently available in Europe and allows for offline syncing of music. Google envisions the service as a way to compete with iTunes. That is why Google was willing to cover the $3-$4 monthly cost per user that the record labels were seeking from Spotify for a U.S. presence. Spotify would sell ads on the service-like they do in Europe, but would still need Google's money to get the deal done. Overseas, users pay for Spotify Premium to access the mobile version of the service.

While no one knows if the deal was completed, Tech Crunch says that its sources have said that there is no deal for now. If an agreement does get struck, the site says its connects tell them to expect a new version of the service that includes a way to connect with the social networks to share and discover new music with your friends. Spotify lets you play music from your hard drive (like tunes you downloaded from iTunes) even if the songs are not in their library. This allows Spotify to fill in the gaps in their music library and allows you to build a huge collection of songs. But we might be jumping the gun. If the Nexus One is launched tomorrow, we might have some more answers about this whole thing.

source: TechCrunch