Could Spotify 'IPO' (without an IPO) as early as September?

COTD_4.5 music streaming revenue

In 2015, Spotify was valued at $8.5 billion.

Furthermore, "having a public stock would also give Spotify's investors and employees the opportunity to cash in their shares", it said.

Music streaming service Spotify is planning to go public this year, but a new report from The Wall Street Journal says the company isn't planning a traditional IPO.

"Starting today, Universal artists can choose to release new albums on premium only for two weeks, offering subscribers an earlier chance to explore the complete creative work, while the singles are available across Spotify for all our listeners to enjoy", Spotify chief executive and co-founder Daniel Ek said in a statement.

Spotify, in turn, can get a break on royalties if it hits certain targets, including some tied to new paying subscribers.

In exchange, Spotify is getting a reduction in royalty rates.

Spotify still needs to broker long-term deals with Sony Music Entertainment, Warner Music Group and the independent label community.

The rumor mill is spinning that Spotify wants to go public in the near future, although the streaming giant has yet to demonstrate it can survive as a profitable company. And UMG, which accounted for 35.7 percent of the USA recorded-music market in the first quarter of 2017, according to Nielsen Music, often sets the pattern for the structure of digital deals.

The partnership promises to "provide UMG with unprecedented access to data, creating the foundation for new tools for artists and labels to expand, engage and build deeper connections with their fans".

The exclusivity model is the first major move towards converting users to paid, which, to no one's surprise, drives the vast majority of their revenue $10/month at a time. Whether Spotify or music labels can make sustainable profits off streaming is another question, but it's clearer than ever that this is the bed that's been made for them.

Related news:

Hot News

isis-killer-beheading-video-story-top UFC 210 Fight Week Kicks Off
Apr 07, 2017 - 02:28
The two were originally supposed to have their rematch at UFC 206 but a groin injury forced Cormier to back out until now. It landed flush, and sent DC flying across the canvas, but it really didn't seem to phase Cormier.

isis-killer-beheading-video-story-top Google strengthens ties to Southeast Asia with new undersea cable
Apr 07, 2017 - 02:25
Indigo has two fiber pairs, one-third as many as the trans-Pacific FASTER cable turned on previous year , where Google was also an investor.

isis-killer-beheading-video-story-top Indiana's AG urged to appeal abortion ruling
Apr 07, 2017 - 02:25
He works as an Online Marketing Consultant for, providing web marketing services for clients in Albany , Goldsboro . Pratt said that IN also failed to justify mandating that women make two separate trips to abortion clinics.

isis-killer-beheading-video-story-top Israeli killed in Palestinian car ramming in West Bank - army
Apr 07, 2017 - 02:21
The alleged attacker was arrested, an Israeli army statement said , without giving details about him. The site is holy to both Muslims and Jews and is located in occupied East Jerusalem .

Senate begins debate on Gorsuch, headed for showdown
Apr 06, 2017 - 02:47
Opposition Democrats insist they have the necessary votes to employ a blocking tactic known as a filibuster. Such a change would impact future Supreme Court nominees and reduce the influence of the minority party.

American mayors affirm climate goals even after Trump executive order
Apr 06, 2017 - 02:43
The Sierra Club says that in recent years some 250 coal plants have been retired or are preparing for retirement. Morrisey said he thinks the president's action can help his state's hard-hit mining industry rebound.

Susan Rice vehemently denies 'unmasking' allegations calling them 'absolutely false'
Apr 06, 2017 - 02:40
Nunes and some other Republicans say this supports Trump's claim that the Obama White House had Trump's team under surveillance. The identities of at least some Trump associates were unmasked, in part at Susan Rice's request or direction.

isis-killer-beheading-video-story-top Patrick Ewing Hugs It Out With John Thompson
Apr 06, 2017 - 02:40
On Wednesday afternoon, Ewing stood composed and assertive during his introduction as the new Georgetown men's basketball coach. ARKANSAS HIRES WOMEN'S COACH: Washington's Mike Neighbors has been hired as the new women's basketball coach at Arkansas.

isis-killer-beheading-video-story-top Lloyds to downsize branches to only two employees
Apr 06, 2017 - 02:40
Last month, RBS and NatWest announced that 158 further branches would close, while HSBC is planning to shut 62 branches this year. Another key indicator that can help investors determine if a stock might be a quality investment is the Return on Equity or ROE.

isis-killer-beheading-video-story-top McIlroy says would think twice about golfing with Trump again
Apr 06, 2017 - 02:40
Asked about dealing with the memories of a year ago , the world No 6 added: "It will surely be there and it has been". Tiger Woods was the most recent member in 2000. "Viewers at home should not be officials wearing stripes", he wrote.

isis-killer-beheading-video-story-top Windies Test series to be Misbah's swansong: PCB chairman
Apr 06, 2017 - 02:39
Meanwhile, the Selectors announced a 16-man squad for their three-match Test series in the West Indies today. He informed the journos that Test series in the Carribean will be Misbah's last.

isis-killer-beheading-video-story-top Louis voters reject funding MLS stadium
Apr 06, 2017 - 02:39
Before the Rams left for L.A., where the team eventually will play in a privately-financed stadium, the powers-that-be in St. Dan Courtemanche, Major League Soccer's executive vice president of communications, released a statement via Twitter .

isis-killer-beheading-video-story-top YouTube's live TV service is now available in select markets
Apr 06, 2017 - 02:36
We'll have more first impressions of YouTube TV, including how it stacks up next to the services from the other guys, soon. No official date for the inclusion of these new networks has been announced , but they will arrive "soon after launch".

Fed Minutes: Members Split Over Need For Faster Rate Hikes
Apr 06, 2017 - 02:31
The minutes showed that several Fed officials believed that Trump's stimulus plans would likely not begin until next year. Investors generally see the reduction in the Fed's balance sheet leading to higher rates.

isis-killer-beheading-video-story-top Gael Clichy backs under-fire Arsenal boss Arsene Wenger
Apr 05, 2017 - 02:12
He'll help get rid of all those fools who play at two miles an hour in midfield. "On top of that, we lost Koscielny at half-time". Despite starting the game slow and on the back foot, Arsenal came from behind twice to earn a well deserved draw at the Emirates.