I think Spotify has the mindshare largely because of the free version, and it's going to be difficult to overcome that.

That being said, I've been using Beats' predecessor Mog for over a year now and I like the interface and the known good sound quality (Spotify wasn't the first to have a 320k library). If Beats is easier to use on mobile than Spotify, it could make a dent.

The integration angle though -- that's where players like Pandora have an edge with apps on Apple TV, smart TVs, etc.