Spotify is one the top industry leaders when it comes to music streaming. The company has been climbing a ladder success and popularity since it’s emergence over a decade ago. The on-demand streaming service is now going to become a part 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 from a direct listing, the company avoids a traditional Initial Public Offering (IPO) which fers 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% the music streaming market. The guaranteed revenue for an industry which normally runs solely on advertising sparks the interest financial investors and banks. Unlike other streaming services that follow a radio-like model listening that is similarly supported by advertising, Spotify was ahead its time in foreseeing the popularity on-demand streaming, sticking out not only in the music world but also in the finance world. They were one the first to follow a strategy 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!