Spotify Announces Licensing Deals and Upcoming Launch


STOCKHOLM, October 7 /PRNewswire/ --

- Innovative Subscription and Ad-Supported Music Streaming Service 
Unveiled

- All Four Music Majors and Leading Independents on Board

Spotify announces a series of licensing deals with music companies
including Universal Music Group, Sony BMG, EMI Music, Warner Music Group,
Merlin and The Orchard for their content to be included in the new digital
music service. Spotify offers instant access to a world of music via a
service that enables on-demand streaming of audio content.

Spotify users will have unlimited access to millions of tracks from a
vast music catalogue, with the opportunity to create and share playlists with
each other and explore music through a wide range of discovery and social
features.

Spotify will launch on October 7th 2008 in UK, Germany, France, Italy,
Spain, Finland, Norway and Sweden. Throughout the remainder of this year and
into 2009 Spotify will be rolled out to further markets. Spotify will be
marketed both as a premium monthly subscription service and a version which
is free for consumers to use and supported by advertising. Consumers will
also have the option to purchase a day pass that gives access to Spotify
without advertising. Advertisers that have signed up to be included from the
launch include Ford, T-Mobile and Xbox.

Daniel Ek, founder and CEO at Spotify says: "We believe that everyone
loves music, and we're thrilled to partner with all major content owners
already at launch. This is an exciting step forward in our mission to provide
the best possible music experience by allowing people to listen to whatever
they want, whenever they want."

Rob Wells, Senior Vice President, Digital, Universal Music Group
International said: "Subscription streaming services are the future of
digital music consumption. Spotify is an excellent consumer experience and
Universal Music Group International is delighted to be a part of the launch."

"We are excited to be working with Spotify as they develop this
distinctive online destination that will include both ad-supported content as
well as quality premium packages," said Ulrich Jaerkel, Senior Vice
President, Digital & New Business Development Europe, Sony BMG Music
Entertainment. "With such an easy-to-navigate interface and wide variety of
music and features for users to enjoy, Spotify promises to be an online
fan-favourite."

Stefan Blom, SVP Commercial Development for EMI Music said: "EMI is
committed to supporting innovative and user-friendly music services. Spotify
is a compelling new way of connecting artists and fans which reflects the
shift we are seeing in digital music from a total reliance on a-la-carte
services to the addition of new models that provide instant and legal access
to our artists' music."

Leanne Sharman, Vice President, Business Development, Warner Music EMEA
said: "From launch, Spotify is a wide-ranging, flexible and engaging music
experience. By offering a compelling choice of ad-supported and paid-for
services, the platform is in a strong position to foster a loyal community of
users and attract advertisers. Not only that, Spotify will be a powerful
promotional and discovery engine through which our roster of artists can grow
their fan-bases."

Charles Caldas, CEO of Merlin said: "We are genuinely excited at the
fantastic quality and attention to detail behind the Spotify service and at
the innovative business opportunity for our members. We are equally pleased
that Spotify quickly recognized the true value that Merlin has brought to the
market and has worked hard with us to ensure that the independent labels that
constitute our membership are available to their users from day one."

"Spotify says, 'Everyone loves music'. We agree, and voted with our feet
by bringing tens of thousands of great artists from all over the world into
this innovative new service, which is tailor-made for independent music.
Ad-supported music discovery is an exciting future increasingly here today,
and we are confident that Spotify will turn people onto our clients' art, and
play a role in helping our artists and labels to get paid as they build
audiences," said Greg Scholl, president and chief executive officer for The
Orchard.

About Spotify

Spotify is an innovative digital music service offering music fans
instant access to a world of music. Spotify enables on-demand streaming of
audio content and aim to combat music piracy by offering a superior user
experience, while monetising licensed content with both an ad-supported,
free-to-the-user model and a premium, paid model. Spotify brings fans closer
to the music and artists they love, and provides a marketplace for additional
products such as live events, music downloads and more.

http://www.spotify.com/en/about/press/

About Universal Music Group

Universal Music Group is the world's leading music company with wholly
owned record operations or licensees in 77 countries. Its businesses also
include Universal Music Publishing Group, the industry's leading global music
publishing operation. Universal Music Group's record labels include Decca,
Deutsche Grammophon, Disa, Emarcy, Fonovisa, Interscope Geffen A&M Records,
Island Def Jam Music Group, Lost Highway Records, Machete Music, MCA
Nashville, Mercury Nashville, Mercury Records, Philips, Polydor Records,
Universal Motown Republic Group, Universal Music Latino, Universal Records
South, and Verve Music Group as well as a multitude of record labels owned or
distributed by its record company subsidiaries around the world. The
Universal Music Group owns the most extensive catalogue of music in the
industry, which includes the last 100 years of the world's most popular
artists and their recordings. UMG's catalogue is marketed through two
distinct divisions, Universal Music Enterprises (in the U.S.) and Universal
Strategic Marketing (outside the U.S.). Universal Music Group also includes
eLabs, its new media and technologies division; Bravado, its merchandising
company; Twenty-First Artists, its full service management division; and
Helter Skelter, its live music agency. Universal Music Group is a unit of
Vivendi, a global media and communications company.

About SONY BMG MUSIC ENTERTAINMENT

SONY BMG MUSIC ENTERTAINMENT is a global recorded music company with a
roster of current artists that includes a broad array of local artists and
international superstars, as well as a vast catalog that comprises some of
the most important recordings in history. Sony BMG Music Entertainment is a
wholly owned subsidiary of Sony Corporation of America.

About EMI Music

EMI Music is the recorded music division of EMI Group Limited, one of the
world's leading music companies. EMI Music represents artists spanning all
musical tastes and genres. Its record labels include Angel, Astralwerks, Blue
Note, Capitol, Capitol Nashville, EMI Classics, EMI CMG, EMI Records, EMI
Televisa Music, Manhattan, Mute, Parlophone and Virgin.

About Warner Music International

Warner Music International (WMI) is Warner Music Group's global (ex-U.S.)
recorded music division that markets and distributes WMG's world-class roster
of U.S. and international recording artists through a network of affiliates
and licensees in more than 50 countries. With a commitment to developing
local talent as well as marketing international superstars, WMI leverages its
expertise in each region around the world to attract and cultivate a diverse
international artist roster. WMG is a pioneer in delivering music content in
new and exciting ways, with a track record of 'firsts' in the digital space.

About Merlin

Merlin represents a global set of independent members whose joint rights
comprise the most valuable basket of rights outside of the big four
labels.Merlin offers rights users the opportunity to license collectively the
individually unlicensable by creating a single point of contact for those
wishing to license from the vast global output of the independent sector, as
well as ensuring its members have effective access to new and emerging
revenue streams and that their rights are properly protected. A global
organisation, its members' market share in the US alone is over 9%,
equivalent to that of the smaller major labels, whilst in Europe member
labels released 72% of the top 60 independent albums released in the past
three years and commanded a 75% UK market share of the top 75 independent
albums in 2007. Merlin's burgeoning membership includes some of the music
industry's most iconic labels,including major globally recognised
independents such as the Beggars Group , KOCH, Epitaph, Rough Trade, Domino,
Cooking Vinyl, Concord, Tommy Boy, Razor & Tie, Saddle Creek, Century Media,
Cherry Red, Kitchenware Records and Warp Records. In Europe members include
[PIAS] Group , Blanco Y Negro, Edel, Naive, Wagram, Aggro Berlin, !K7, Kontor
Records, Ministry of Sound (Germany), SPV and Gazell. Members also include
global distributors and aggregators such as IODA, Finetunes, State 51, Shock
Entertainment, Virtual Label and Kontor. http://www.merlinnetwork.org

About The Orchard(R)

The Orchard (NASDAQ: ORCD) controls and globally distributes more than
1.3 million songs and over 5,000 video titles through hundreds of digital
stores (e.g. iTunes, eMusic, Google, Netflix, V CAST) and mobile carriers
(e.g. Verizon Wireless, Vodafone, Bell Canada, 3). With operations in 29
regions around the world, The Orchard drives sales for its label, retailer,
brand, and agency clients through innovative marketing and promotional
campaigns; brand entertainment programs; and film, advertising, gaming and
television licensing. A pioneer in digital music and media services, The
Orchard fosters creativity and independence. The Orchard is a registered
trademark and The Orchard logo is a service mark of Orchard Enterprises NY,
Inc. All Rights Reserved.

Press contact Spotify:

    Sophia Bendz,
    +46(0)709-79-22-07.

    Press contact Universal Music Group International:

    Adam White,
    +44(0)20-7471-5665 (office).

    Press contact Sony BMG Music Entertainment

    Claire von Schilling,
    +44-212-833-8082.

    Press contact EMI Music

    Richard O'Brien,
    +44(0)20-7795-7447.

    Press contact Warner Music International

    Sam Selby,
    +44-207-368-2827.

    Press contact Merlin:

    Charles Caldas.

    Press contact The Orchard

    Deana Graffeo,
    +1-646-237-3780.



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