According to the Financial Times, US record companies are believe they will lose out if the major of users stick with Spotify's free-to-use ad-supported model.
US record companies have challenged Spotify to demonstrate how they can convert subscribers. One unnamed record company executive said: "We think Spotify is a great service but they're going to have to convince us they can convert people from free to paid subscription to make it worth our while. As an ad supported service the economics don’t work at all."
Despite being heralded as an alternative to illegal downloading, Spotify has struggled to persuade consumers to pay. In the UK it is believed less than 10% of the users have signed up to its £9.99 ad-free service.
Last month the service's founder Daniel Ek sent an open letter to record industry executives asking them to lower royalty fees.
Speaking to The Times, Dan Nash of rival service Napster, said: "Where is Spotify going to be in a year from now with its free service? All these ad-supported models have burned out already - why is Spotify going to be any different?"