Spotify could go public next year, report says
The Swedish streaming service is reported to be considering an IPO, but may have to bring down payments to the music industry to become profitable.
Spotify could go public next year, according to reports.
The Swedish music streaming service has been the source of IPO rumours for some time. Bloomberg claims to have spoken to five people who say the company plans to issue an initial public offering (IPO) in the second half of 2017.
Spotify was founded 10 years ago, and despite earning more than $2 billion in 2015 it has lost money each year. But the service has built an audience of over 100 million listeners, and an increasing number of those listeners are opting to pay $10, £10 or AU$12 per month for ad-free and mobile streaming. The company's major expense, however, remains payments to the music industry, which Spotify is reported to be trying to negotiate down before going public.
Spotify declined to comment on the reports.
Founder and CEO Daniel Ek said last month that he would not sell up, saying he wanted to make Spotify "one of those super companies here in Europe".
Spotify's rivals include Tidal and Apple Music, which are trying to use big names and exclusives on hot new records to tempt listeners.
