Spotify IPO set for April

Spotify IPO set for April

Spotify IPO set for April

"We are working on launching in some of the biggest markets in the world, including India, Russia, and Africa which has a very rich musical culture", Ek said.

Having said that, once launched in India, Spotify will compete with established players like Apple Music, Google Play Music, Gaana, Saavn, Hungama and even Amazon Prime Music which was launched late last month in the country. During the investor day, Ek also revealed the company licensed more than 35 million tracks and employed 3,500 employees.

"Spotify has filed a Form F-1 with the SEC that provides full financial disclosure, just like we would've done with a traditional IPO", the company said.

Spotify will begin trading on the New York Stock Exchange on April 3.

Spotify shouldn't be too anxious though with 71 million paid subscribers, which is double Apple Music's 36 million subscribers and Amazon Music's 16 million subscribers.

As reportedly confirmed by CEO Daniel Ek at a recent investors day presentation, Spotify is ready to make its India debut shortly.

While Spotify has tried to guide investors in its listing prospectus by disclosing the value at which shares have changed hands in private transactions, the range has been wide.

As it paves its nontraditional path to go public via a so-called direct listing, Spotify said it would prioritize growth over profit and seek to differentiate itself and defend its leadership position in music streaming from a broad field of powerful competitors.

With a date in place to go public, what's in store for the future of Spotify?

In its recently-published prospectus, Spotify boasted 159 million monthly active users at the end of 2017, with 71 million of those converted to premium subscriptions. Although - as in last month's SEC filing - the Spotify execs also said that they thought there was the potential to further boost ad income, so that loss-leading freemium wasn't quite so loss-leading.

The independent service is jockeying against efforts from Apple, which has 38 million paid listeners and eschews advertising-supported services. Ek discussed the flywheel that drives Spotify's business, explaining that the more people discover music, the more they listen, and the more artists that become successful on the platform, and the more artists will embrace the platform and bring their fans. Nevertheless, he reckoned, there was a lot of advertising spend yet to be accessed by the digital music market.

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