“Apple says it has approved an iPhone app from Spotify, a music service that some people believe represents a growing threat to iTunes,” Robert Andrews reports for paidContent.

“The decision has been closely watched in part because Apple has previously disallowed apps it deems to duplicate core functions of its handset,” Andrews reports. “Speculation had centered on whether Apple would regard an unlimited-music app as potentially cannibalizing its own iTunes Store’s a la carte downloads, although there’s no proof that this is how it feels.”

“Spotify is winning rave reviews, but a question mark hangs over its chances of financial success.,” Andrews reports. “The app would be free to download but requires a £9.99-a-month subscription, which also removes ads. Spotify says there will also be an annual-subscription option.”

MacDailyNews Note: Spotify is a proprietary P2P music streaming service that allows users to listen to specific tracks or albums with little or no buffering delay. Music can be browsed by artists, albums or created playlists as well as by direct search. Due to the system’s use of DRM, it is not possible to save the streamed music for use outside the application, but links are provided to allow the listener to directly purchase the material via partner retailers. Spotify in its free version is currently only available in parts of western Europe.

Andrews reports, “Spotify hopes to launch in the U.S. in Q3 or Q4.”

Full article here.

MacDailyNews Note: Currently, we cannot find the Spotify app in any of Apple’s western European App Stores.

[Thanks to MacDailyNews Reader “John A.” for the heads up.]