Report: Spotify Eyes SoundCloud Amidst Japan Rollout

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Spotify is reportedly in "advanced talks" to acquire online audio distribution platform SoundCloud, according to the Financial Times, which cites "people briefed on the discussions."

The move is intended to compete against rivals like Apple Music, which now has 17 million users to Spotify's 40 million paid subscribers. As the FT notes, Soundcloud backers include Twitter, which made a $70 million investment this summer.

Spotify and SoundCloud declined to comment on the rumors.

In March, SoundCloud launched a new $10 monthly subscription service. But it will likely be difficult for the service to compete with the likes of Spotify, which just this week launched in Japan.

Available on an invite-only basis for mobile, desktop, and PlayStation users, Spotify Japan comes in free ad-supported or 980 yen-per-month ad-free subscription plans. The program features a number of familiar functions, including Discover Weekly and Release Radar, as well as new elements like curated playlists from Spotify's local team.

Plus, Japanese listeners can tap into karaoke-style song lyrics on mobile—making its global debut—alongside desktop lyric support.

Local music fans can go online to request an invitation, or just wait for Spotify to roll out to all users in Japan.

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