"Something for nothing. It's the greatest value proposition in the history of the world", said Gustav Söderström, Spotify's head of research and development.
Helping listeners find new bands and songs is an "infinitely larger" opportunity in music than so-called discovery was for video, McCarthy said, comparing Netflix's rapid rise from mail-order DVD distribution into a streaming media service to Spotify's audio streaming business.
At that valuation, it is believed that the three major music companies (Universal, Sony and Warner) plus Merlin now own Spotify shares jointly worth somewhere between $2bn and $3bn - thanks to a cumulative ownership stake covering between 10% and 20% of the streaming company.
Presently, Spotify has 71 million paid subscribers. "Spotify's growth-oriented social features such as shared links, shared playlists, and aggressive integrations with social networks like Facebook in 2011 catalyzed rapid audience growth".More news: Miley Cyrus Sued for $300 Million for Allegedly Stealing "We Can't Stop"
However, we must also consider that Spotify has also been aroiund since 2011.
Patel (freshman-division of undergraduate studies) said if Spotify diversified more, he would be interested. The overall effect was like an Apple WWDC presentation crossed with a product pitch session. Apple's pricing matches Spotify's at $10 a month or $5 for students, and the company aims to appeal to its already huge fan base.
However, one thing that pushes people away from Apple Music is that, although there is a three month trial available, the platform does not have a free version in the same vein as Spotify. An opinion shared by the federal Minister for the Digital and Telecommunications Programme, Alexander De Croo, who says, "The significance of streamed music will only increase, as much for artists as for the music industry".
In addition, its music services are primarily delivered over devices such as Apple's iPhone and Amazon's Echo series of speakers, which could emphasize their own services over Spotify's. It has been immensely popular for several years and it took a while for competitors to start catching up, though Spotify has a firmer grip on the younger crowd.
Spotify launched its music streaming service in South Africa, marking its entry into the continent, where smartphones are gaining momentum and telecom infrastructure is improving. Apple and other rivals don't have free tiers, they only offer paid subscriptions at this point. Unlike traditional IPOs, Spotify will not raise new capital.