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

Spotify and Universal Music Partner to

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.

Liverpool held by Bournemouth as King crowns comeback
Apr 07, 2017 - 02:26
Now sitting 13th, it has not been the worst season for Bournemouth by any stretch. They are continuing to grow as a team and as a club in England's top flight.

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 Human remains found in Missouri identified as missing 21-year-old woman
Apr 07, 2017 - 02:25
The remains of the second person discovered about 20 miles away from Kansas City have not yet been identified, police said. A mushroom hunter found human remains in the area south of Belton, and north of Cleveland, near Highway Y on Monday.

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 Amazon to buy stake at hydrogen and fuel cell firm
Apr 07, 2017 - 02:24
This could be an indication that investors expect the deal to benefit the fuel cell sector as a whole. Proshare Ltd Liability holds 0% of its portfolio in Plug Power Inc (NASDAQ: PLUG ) for 29,014 shares.

Conte has released Chelsea star Hazard!
Apr 07, 2017 - 02:23
In the we got the victory our performance deserved. 'He knows that he is important to Chelsea , like I do. Conte was asked how it felt being the first manager to complete a league double over Guardiola.

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 .

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 IS fighters in Mosul provoking coalition strikes on civilians: US military
Apr 06, 2017 - 02:39
A series of large-scale bombings claimed by IS have struck Baghdad since the operation to retake Mosul began. Wednesday night, a suicide truck bomb targeted a police checkpoint on Baghdad's main southern entrance.

Norwich police to launch distracted driving campaign
Apr 06, 2017 - 02:39
Through the end of the month, police will be on patrol looking for distracted drivers as part of the U Drive. Any and all distractions endanger the life of you, your passengers and those who share the roads with you.

isis-killer-beheading-video-story-top Georgetown hires Patrick Ewing as men's basketball coach
Apr 06, 2017 - 02:39
He played for the team in the early 1980s, winning two Big East Player of the Year awards and a national championship in 1984. The person requested anonymity because he was not authorized to speak publicly until a formal announcement is made.

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".

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.

Susan Rice Allegations Are 'Fake Scandal' Peddled by 'Right-Wing Media — CNN's Cuomo
Apr 05, 2017 - 02:01
The new news reports come barely two weeks after Rice denied knowing anything about the intelligence reports. So not only did it not occur, it didn't occur, and it could not have occurred, directed by the White House.