3 and Spotify agree deal – music streaming coming on HTC hero very soon

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htc hero.pngIndustry magazine New Media Age has confirmed what UK tech watchers have suspected for a while that 3 has done a big deal with music streaming service Spotify.

The deal means that Spotify will be bundled with 3 handsets starting with Google Android powered HTC Hero next month. A range of other phones will follow.

One of the most interesting questions surrounding the agreement is how the service will be funded. Will 3 users simply pay £9.99 per month? Or is the network going to subsidise the service to give it a competitive edge over its rivals?

The deal gives further credence to the story that manufacturer INQ, which is owned by 3’s parent company, will be producing a dedicated Spotify phone very shortly.

The deal, is a real win for both parties, For 3 it gives the network more credibility with early adopters. For Spotify it means that it gets an opportunity to broaden its user base.

In NMA Jeremy Paterson, MD of music consultancy Frukt, said “Spotify has a fairly narrow demographic and isn’t yet a mainstream service,” he said. “A deal like this will broaden its user base and take it to mobile phone shops in places like Barnsley.”

HTC Hero video preview

Ashley Norris