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 Nearly half of US adults infected with genital HPV
Apr 07, 2017 - 02:27
Though recent numbers have shown high HPV rates, vaccinating adolescents has been the proven way to bring these totals down. While great progress has been made in creating HPV vaccines, current approaches to prevent infection have limitations.

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.

Sensex, Nifty close in red after RBI keeps rate unchanged
Apr 07, 2017 - 02:25
At 9.15am, the home currency was trading at 65.06, down 0.27% from its Wednesday's close of 64.88. In contrast, the BSE market breadth was bullish - with 1,472 advances and 1,419 declines.

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.

isis-killer-beheading-video-story-top Do we need another wireless carrier? Who cares! Comcast is here anyways
Apr 07, 2017 - 02:20
Seems like a deal before you realize how much cash you're shoveling in Comcast's direction under the guise of a getting good deal. Comcast will start selling cellphone plans called Xfinity Mobile in the coming months, using a network it's leasing from Verizon.

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.

isis-killer-beheading-video-story-top Rally in Memphis for equality on anniversary of MLK's death
Apr 06, 2017 - 02:42
The FBI caught backlash Tuesday after tweeting a tribute to Martin Luther King Jr. on the anniversary of his assassination. King was very clear that you can never separate isms, the triune isms of racism, materialism, or classism, and militarism.

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 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.

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".

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.

Obama aide denies using intel to spy on Trump advisers
Apr 05, 2017 - 02:09
White House National Security Adviser Susan Rice , shakes hands with incoming White House National Security Advisor Gen.