Spotify's Daniel Ek Explains Why the Music Business Needs Him, and You Do, Too (Video)

Peter Kafka — Wed, 08 Dec 2010 00:10:20 +0000

Spotify CEO Daniel Ek used to be confident that his buzzy music service would launch in the U.S. this year. That’s no longer the case, but Ek maintains that he’s going to get to the States sometime, and that people will love it when he does.

Here’s the thing, though: In Europe, where Ek has more than 10 million users, and 750,000 paying subscribers, music subscription services are a novel idea. In the U.S., they’re old hat: Ask Rhapsody. And Napster. And Rdio. And MOG. And Thumbplay, etc.

And subscription services haven’t really taken off, either: Most music listeners seem content to buy their music from Apple’s iTunes, or even brick-and-mortar stores like Best Buy and Wal-Mart. Or they don’t pay for music at all.

So what’s going to make Ek and Spotify stand out? We’ll let him make his case, in his own words, in a highlight reel of the conversation I had with him onstage at D: Dive Into Mobile.

[ See post to watch video ]

RealNetworks Cuts 130, 7.5 Percent of Workforce

Peter Kafka — Thu, 04 Dec 2008 21:10:14 +0000

Next up on today’s layoff parade: RealNetworks (RNWK), which is cutting 130 jobs, or 7.5 percent of the workforce. Standard explanation: The company is trying to “bring expenses in line with revenues in a time of economic turmoil.”

The layoffs are companywide. The company tells us it is not shutting down the New York office of Rhapsody America, the music subscription service that Real runs as a joint venture with Viacom’s (VIA) MTV as Gawker reported this morning. The corporatewide layoffs were first reported by CNET.

Other details relevant to laid-off employees:

All are on payroll through the end of the year
Each will be offered a cash severance package based on length of service
Said severance package will include six months of paid COBRA
Etc., etc.

Real PR boss Bill Hankes has more details at the company’s blog.

AllThingsD » Rhapsody America

Spotify's Daniel Ek Explains Why the Music Business Needs Him, and You Do, Too (Video)

RealNetworks Cuts 130, 7.5 Percent of Workforce