Can Spotify Go Public in 2017?

Spotify wanted to go public in the second quarter of 2017 after the company increased its convertible debt from investors who valued the company around $8 billion.

Market experts doubted the plan of Spotify considering its current state and its wide competition against its major competitors. An analyst shared that it is a tough sector and that is skepticism will have to overcome. While an expert on online ad service and database said that record labels can’t really afford to take their music off Spotify.

Spotify Chief Executive Daniel Ek has made several effort to encourage the music aficionados to pay music online. The company gets approximately 30 million active users who pay $10 monthly and the its sales went $2.2 billion in 2015.

However, the music company paid around $1.8 billion for the commissions. Apart from this, record labels and publishers had their respective shares. Mr. Daniel Ek has tried to reduce the payment for the labels, but he failed eventually.

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On the other hand, a person familiar with the negotiation revealed that Spotify holds 10 percent of the revenue of the labels and this year the company forecasted a 50 percent increase of its total revenue. The initial public offering of Spotify couldn’t be achieved without a clear path on the pressure caused by its competitor and IPO time pressure as well.

Spotify in Asia

Separately, as Spotify expands its prominence in Asia, the company pays attention on localization and plans to court the Korean pop scene to be part of their plate.

Spotify is currently making its name in Singapore, Malaysia, Hongkong, Taiwan, Indonesia, and the Philippines. The expansion plan of the company includes a various way of payment among its loyal customers in Southeast Asia.

Spotify offers different premiums from these Southeast Asian countries. Singapore gets S$7.30 per month, subscribers in Hong Kong pay $6.20 and the Philippines has it for $2.70. Since many users do not pay using credit cards in  Indonesia and in the Philippines, Spotify let them pay in cash.

Sunita Kaur, managing director of Spotify Asia, said that they want to be everywhere in Asia. Kaur admitted that they don’t have a set road map as yet because they let the licensing lead us, so once the licensing deals for a market is done, then they can get ready to launch.

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Spotify Gets More Subscribers

Launched in 2008, Spotify has become one of the leading music, podcast and video streaming service provider. The London based media company is available in Western Europe, Oceania and America and has accumulated around 100 million active users as of June 2016.

Spotify can run on smartphones, tablets PC’s and on any television connected set top boxes which raised the competition with Apple Music. The music provider has more than 30 million tracks being enjoyed by the users and others can have it for free with a few interruptions caused by the advertisements. It also allows subscribers to build a personal collection playlist while artists may post tracks on social networks and share them with fans eventually.

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Author: exocapitalfinancepro

As the dissemination of online financial news gets easier through the evolution of different media platforms, Exo Capital Finance Pro brings the most comprehensive up-to-date financial information right in front of your eyes. In line with the mission of Exo Capital Market, this news blog aims to provide the financial ideas needed by the clients through the market news and analysis delivered regularly. Exo Capital Mission Grounded on financial stability and service efficiency, Exo Capital Markets Ltd. hopes to stimulate and drive innovation in the world by catering the needs of its clients. Committed to guiding its clients to achieve their maximum potentials, the company seeks to lead and bring growth into the market through the high quality services it provides. Exo Capital Vision Exo Capital Markets Ltd. strives to become the leading financial services firm by offering its clients with the most modern solutions in the industry. The company wants to create an avenue of knowledgeable and competent traders by assuring accountability and honesty in delivering the services we provide for the community.

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