Spotify, the Sweden-based developer of an ad-supported digital music service, has announced its launch with the signing of licensing deals with all four major record labels, as well as independent labels represented by Merlin and The Orchard.

Initially available in the U.K., Germany, France, Italy, Spain, Finland, Norway and Sweden, Spotify offers users unlimited streaming of millions of tracks, playlist sharing, and a marketplace for downloads, concert tickets and other items. Launch advertisers include Ford, T-Mobile and Xbox.

The company also offers an ad-free, subscription-based version, available in the U.K. for about $1.75 per day, $17.50 per month or $175 annually.

Spotify, which plans to expand into additional markets in 2009, has reportedly raised over US$21 million in funding from investors including Northzone Venture Partners, according to TechCrunch UK.

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http://www.prnewswire.co.uk/cgi/news/release?id=238993

http://www.spotify.com