Spotify's South American expansion is the latest sign of the region's digital music potential.

The Latin-American digital marketplace, dormant for so long, is now playing catch-up at lightning speed. Earlier this year, following the debut of such services as Deezer, Muve Music and Rdio in Latin America, Spotify launched operations in Mexico. And last month, the service debuted in Argentina, with plans to expand to Brazil, Chile and Colombia in the coming months, sources say.

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