Spotify loss widens ahead of potential stock market listing

  • Spotify loss widens ahead of potential stock market listing

Spotify loss widens ahead of potential stock market listing

The company hasn't updated the figure for how many paying subscribers it has, but as of March those were north of 50 million.

Spotify, which began operating in Hong Kong, Singapore and Malaysia in April, has expanded faster globally than Pandora.

Music Ally contacted Spotify to ask about sponsored songs, and the company's spokesperson provided this response: "We are always testing new ways of putting the right music in front of the right audiences. But people familiar with the company confirm it is talking about two deals it has recently signed with Universal Music Group ... and Merlin". Spotify will pay a smaller share of its revenue to those partners if it meets certain targets.

The move could make the streaming platform more attractive to its top-selling artists, such Adele, Lady Gaga, Coldplay and Kanye West, by letting them release albums exclusively to premium users.

According to Music Business Worldwide, this number represents a 40 million user climb since this time previous year, and 100 million user climb since May 2014. The figure amounted to 100 million users (paid and free) in June 2016. Meanwhile, "Spotify's revenue grew more than 50 percent, to $3.3 billion past year". "The increase over our operating loss primarily relates to the cost of debt and the impact of foreign exchange rates on our debts and investments".

The company said it corrected errors on prior accounting statements to adjust for charges on credit cards, payment processing issues, understatements on royalties, and incorrect calculations for management bonuses.

Additionally, the new investors can sell their shares just 90 days after the IPO, well before the 180 day lockup for Spotify's other investors and employees.

In 2014, Spotify also suffered further losses of €25.9 million.