Yesterday, music streaming powerhouse Spotify updated it’s subscriber count for the first time since it surpassed 50 million subscribers back in March of this year. The company now reportedly has 60 million paying subscribers. The impressive growth comes just months before the company’s potential stock listing on the New York Stock Exchange.
The company maintains its position as the leading contender in the streaming wars with Apple Music and TIDAL trailing behind. Spotify is rumored to be planning a “direct public listing” on the stock market instead of an “initial public offering.” What that means is there will be no new shares issued, but existing shares in the company will start trading immediately upon listing.
The growth in subscriber count is good news for the company, who is still dealing with high losses, despite it’s leading position in the marketplace. Spotify likely hopes that the new multi-year licensing deals with most major record labels – a Warner Music deal is still in the works – will help it’s revenue problems.
Complete Music Update reports:
Long-term success in subscription streaming requires a combination of mass scale and keeping expenditure under control. Spotify bosses will be hoping that cutting its revenue share commitments to the labels in the new deals combined with this year’s impressive premium user growth figures will keep the City boys happy in the near term at least.
Once the company goes public, it (and it’s profit/loss) will be under constant scrutiny from the financial and business worlds. But as is evidenced by the recent subscriber count update, the future is hopeful for the revolutionary company that helped bring growth back to the music business.