Spotify rumored to being going public in 2017
Spotify is now a global powerhouse in term of music streaming. Acting as a platform for a multitude of genre’s, it has allowed some of best playlist’s to become instantly accessible. In turn, increasing people’s exposure to tracks even more so than before. However as a business, it has experienced a few bumps in the road. But not all news regarding is fiscal state is bad.
According to a number of individuals close to the company’s wider plans, Spotify is set to go public in the second half of 2017. Currently estimated to be worth $8 billion in value, it contribution to the music industry as a whole as exponentially grown in recent years. Furthermore, it was able to raise over $1 billion in funding pledges from investors prior to its 10th birthday, earlier this year in March.
While business politics and legal affairs continue with Apple, over the past year Spotify has seen major growth. In turn, making it one of the most successful periods in its existence. With now over 100 million monthly users, its revenue is now sourcing from around 30 million of which use are using the premium, paid platform. With sales doubled to $2.2 billion in the last 12 months, it may be hard to believe the fact they’ve yet to post a net profit.
But when one realizes that nearly 60% of that income goes directly to record labels, you begin to understand the bigger picture. It is also worth noting, that Spotify now accounts for nearly 10% of labels’ revenue as of today. That is around $1.8 billion in commission. Overall, showing the growth in the platform in general.
H/T: Dancing Astronaut