Belfast Telegraph

UK Website Of The Year

Spotify streaming service on song as it doubles worth

By Hazel Sheffield

Published 14/04/2015

Spotify pays 70% of its revenue to rights holders as royalties and not all users pay to stream
Spotify pays 70% of its revenue to rights holders as royalties and not all users pay to stream

Spotify's value has nearly doubled in six months. The streaming service is nearing a deal to raise $400m (£273m) from another round of funding, taking its value to $8.4bn ($5.74bn), according to reports.

Spotify was valued at more than $5bn (£3.4bn) last September, according to filings by the company that owns the shares. Forecasts show that this is up to six and a half times its revenue, which analysts said was around $1.3bn (£900m) in 2014.

If the deal with investors including Goldman Sachs and Abu Dhabi's sovereign wealth fund goes through, Spotify will become one of the highest valued private technology companies in the world, despite the fact that it is still struggling to make money.

Spotify pays 70% of its revenue to rights holders as royalties and not all users pay to stream. Only 15m users pay the premium to get unlimited ad-free streaming, compared to 45m that use the service for free but get hit with adverts.

Belfast Telegraph

Your Comments

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting? customercare@belfasttelegraph.co.uk

Read More

From Belfast Telegraph