Spotify the streaming music service mainly based in Europe had set its sights on the US.And after dealing with the major record companies .
Spotify has around 10 million users in Europe with around 1 million premium users. But its American service was put on hold because the labels had doubts about its money making abilities.Hence the company had reduced free elements of its product.
The total listening time was reduced to 10hours per month and also limits on the number of times a track could be played.
Spotify is most likely to face serious competition form US based online jukebox Pandora which claims it has around 100 million registered users.
Source: BBC news