Spotify is one of the top industry leaders when it comes to music streaming. The company has been climbing a ladder of success and popularity since it’s emergence over a decade ago. The on-demand streaming service is now going to become a part of the financial world in a big way by putting a direct listing on the New York Stock Exchange (NYSE). The current listing is estimated to be $13 billion with plans to release company shares to the public later this year or early 2018. By making the shares public from a direct listing, the company avoids a traditional Initial Public Offering (IPO) which offers shares to investors first, allowing them to set a pre-determined price for the public stock market later on.
Spotify has an estimated 50 million paying subscribers with no reliance on advertising, making up 43% of the music streaming market. The guaranteed revenue for an industry which normally runs solely on advertising sparks the interest of financial investors and banks. Unlike other streaming services that follow a radio-like model of listening that is similarly supported by advertising, Spotify was ahead of its time in foreseeing the popularity of on-demand streaming, sticking out not only in the music world but also in the finance world. They were one of the first to follow a strategy of believing listeners would pay to subscribe to a self-curated and interactive listening experience.
There has yet to be a comment from Spotify. Stay tuned for more updates!