Apple Music Growing Strong: 38 Million Paid Subscribers, But Spotify Still Rules

Ivan Schwartz
March 16, 2018

Spotify observed in its investor presentation that young consumers were driving its growth. The team won't even throw a party for itself to celebrate the milestone.

Spotify's co-founder and CEO, Daniel Ek, framed the launch as an attempt to save the music business from the effects of piracy as users increasingly use curated services like Spotify as a way not just to sample music but to discover it.

"As a publicly listed company, Spotify's private investors and employee shareholders will be able to sell their shares on the New York Stock Exchange, instead of the private market", the company said.

The absence of Wall Street ceremony only adds to the unusual nature of Spotify's IPO.

Spotify is around 10 years old, and a lot of people have supported it along the way to becoming the world's leading music-streaming platform.

Spotify, Apple Music, Pandora and the others will have to look for ways to offer something new and different as more competitors rise to the scene.

However, we must also consider that Spotify has also been aroiund since 2011. As a result, Spotify said in its filing that "the trading volume and price of our ordinary shares may be more volatile".

Unusually, the company is not issuing new shares as in a traditional IPO.

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"You won't see us ringing any bells or throwing any parties".

A key sticking point, according to Ek, is the lockup period that is customary when companies go public. Plus, it wants people to know that it doesn't need to raise more cash - it's doing just fine.

While the company will give its first annual financial guidance on March 26, chief financial officer Barry McCarthy laid out long-term operating goals.

This could soon change as the biggest music streaming service in the world, Spotify, could soon make its way into India.

Spotify's presentation to investors set out how it planned to grow and fend off larger rivals such as Apple (NasdaqGS: AAPL - news) and Amazon.

As part of its goal to reach as many people as possible, the music streaming service said its free, ad-supported tier would remain in place, even as almost 90% of its revenue comes from premium, subscription-based users.

Pieter Swaelens speaking on behalf of BEA Music, said, "The peak of paid streaming music services has certainly not yet been reached in Belgium". It brought in $4.99 billion in revenue in 2017, up from $3.6 billion the previous year.

Other reports by GizPress

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