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This will change Spotify after its IPO, and this will affect you as a user

Exercise 2018 has only brought good news to the music service in streaming who dared to change the rules of…

This will change Spotify after its IPO, and this will affect you as a user

Exercise 2018 has only brought good news to the music service in streaming who dared to change the rules of the market , and that is Spotify It undoubtedly revolutionized the paradigm of the music industry, offering millions of users the continuous and unrestricted reproduction of several million songs by the most popular artists in the world, also adding a interesting social concept with shared playlists and much more.

If in the middle of last March the most popular application among online music services premiered new interface with the approval of the criticism, shortly after announcing the future inclusion of voice control for reproduction and measures to take for such an important problem as its pirate users, more than two million As announced by the European company itself along with the data of its imminent IPO.

A landing in the stock markets that took place today on the New York Stock Exchange (NYSE), with a Reference price per share of about 132 dollars , which places the valuation of Daniel Ek’s company in stratospheric 23,500 million dollars . It should be remembered that in 2015 the experts rated Spotify at around 8,500 million.

This will change Spotify after its IPO, and this will affect you as a user

This will change Spotify after its IPO, and this will affect you as a user

It should be remembered that the Swedish company He has not opted to debut on Wall Street in the old way , with one of the traditional Initial Public Offers, but with a direct listing of its actions much more economical for the company, which does not require a financial intermediary and that allows the exchange of shares directly .

Daniel Ek himself has been responsible for explaining it indicating that the company does not want funding and is not raising funds , but want to go public with a process as democratic as possible, as he tells us The Verge :

Spotify is not raising capital, and our shareholders and employees have been free to buy and sell shares of our company for years. So, if it is true that we are in a stage of great growth, this does not change what we are, what we believe in and how we work.

This will change Spotify after its IPO, and this will affect you as a user

This will change Spotify after its IPO, and this will affect you as a user

New business lines to become the Netflix of the music industry

If it is true that Spotify is not going to change the way it operates after the company’s IPO, it is true that new horizons open and must open now that the company has grown suddenly up to 25%, at least in terms of economic valuation. Nobody escapes that Spotify has never had benefits despite having a user base of more than 157 million worldwide, and that is a slab almost insurmountable.

It is true that some 71 million users are premium , around 45% of the total – a not insignificant number -, and that these users are those that maintain almost 90% the income of a firm that most of the money is left to compensate the record labels . Not in vain, Sony BMG, Universal, Warner and EMI control around 16% of the company, and have more than 75% of their music library.

Many already speak of a clear objective in the mind of Daniel Ek, which is none other than become the Netflix of the music industry producing its own content Besides podcast that are already available in the application. In fact, this is the mirror in which the Swedish company has wanted to look in recent years.

Definitely, shaking that control by the major labels will require movements , and that will surely be the one that most affects users who will continue to search for songs by their favorite artists, whether or not they are portfolio of Sony BMG, Universal Music, Warner Music or EMI.

This will change Spotify after its IPO, and this will affect you as a user

This will change Spotify after its IPO, and this will affect you as a user

In addition, another of the most important changes will be in the aforementioned fight against modified applications and pirated users , who use the service premium without advertising and without paying a single euro to Spotify. These users currently represent around 1.5 percent of the total number of customers of the service streaming musical, and represent a significant loss of income.

Some analyst has dared to venture that Spotify should also enter the business of devices with a smart speaker, headphones or a connected music player , although already having smartphones sure that these smart speakers would be a better movement than any dedicated player.

What has been clear is that the experts are skeptical with this release the stock exchange, the first of a company dedicated to streaming of multimedia content, although Facebook and Twitter show the way to a Spotify that wants to grow and finally go to green numbers . And you, how do you see the future of Spotify and this ‘freemium’ music playback experience?

More information | Spotify

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Tags: gadgets