Sean Parker just explained the success of Spotify at a Daily Beast event, saying that Spotify is doing what Napster never had a chance to try. It’s taking a passionate community of music listeners and converting them into paying subscribers.
How? Spotify offers free streaming on a desktop. The more people use it, the more they get hooked. They build playlists, they collect albums, etc. At that point, Parker says, “we’ve got you by the balls.”
If you want to escape the locked environment of the desktop, you pay to access it on the iPod, or the iPhone.
Spotify is not available in the US now, though Parker says he hopes that happens by year end. Parker is a partner at the Founders Fund which is invested in Spotify.