The day iTunes died? Spotify is working on a killer iPhone app

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Ever since hot streaming music startup Spotify hired a director of “portable solutions” you just knew they were going to do something cool in mobile. And frankly there is no cooler place to do it right now than on the iPhone.

There have been rumblings of an iPhone app for the service especially on Swedish blogs. Spotify is based in Stockholm. News that they are hiring a Symbian S60 specialist also indicates that Symbian will join the platform.

The rumours are that the iPhone app will initially be available only to premium users, but will offer over-the-air streaming of the entire library, plus access to playlists. The ability to cache playlists will mean you can save tracks and albums temporarily to your iPhone to access when out of range of wifi or a mobile network.

This video demo shows an amazing app which, frankly, could even give the iTunes store a run for it’s money given that it provides instant access to millions of tracks, assuming Apple lets it into the App Store of course.

UPDATE: Someone has removed the video so contact us if you have a copy and we’ll re-post it.

UPDATE II: Thanks to TechDigest for grabbing the video, below.

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