One of the world’s largest streaming services could be going public in 2017. That would be Spotify: a music site that allows you to stream millions of song for free with advertisements, or with a premium membership for $9.99 a month.
According to Bloomberg News, the company is rumored to go public in the second half of the year and investors value it at $8 billion.
Spotify currently has over 30 million customers and sales last year almost doubled to $2.2 billion, but the streaming service still loses money daily. That’s due to the music industry and the commissions it owes to musicians, publishers and record labels, song writers and more.
The music industry is always a gamble. After Pandora went public in 2011, it’s been struggling to make a profit. Spotify is working hard to not go down that route. According to Bloomberg News,
Spotify spent $250 million on research and development last year, focusing on improving its software’s analysis of listener behavior and upping revenue from audio ads. It’s also experimenting with video, having ordered episodes of a dozen original, music-themed TV series, with producers including Def Jam Recordings co-founder Russell Simmons and actor Tim Robbins.
The future of Spotify is unclear, but right now it’s keeping afloat with its current conditions. Stay tuned for more.
Source: Bloomberg News