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Spotify files to go public, eying streaming growth despite losses

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Spotify on Wednesday announced a long-awaited public listing, voicing confidence that its streaming model will keep reshaping the music industry but acknowledging that the company has yet to turn a profit.

In its filing with US regulators, the Swedish platform that over the course of a decade has helped make streaming the most popular way to listen to music in parts of the world estimated the company’s value to be as much as $23.4 billion.

In an unusual move, Spotify said it would list existing shares directly on the New York Stock Exchange rather than issue new shares, allowing its founders and investors to maintain control and avoiding the cost of hiring Wall Street underwriters.

The filing said that Spotify had 159 million monthly users including 71 million paying subscribers — twice that of closest rival Apple Music, which the tech giant launched in 2015 to win a slice of the growing streaming market.

“While streaming has changed the way many people access music, we believe there is an untapped global audience with significant growth potential,” Spotify’s 35-year-old CEO and co-founder Daniel Ek said in a statement.

Ek cited the model of Facebook, which has about two billion users, and YouTube as proof internet companies can reach “global scale.”

The streaming service is available in 61 countries or territories and has room to expand even in mature markets, Ek said, citing data showing the average American listens to music for 32 hours each week.

Spotify in its filing said that the share listing could be worth $1 billion but cautioned that it was only offering the number informationally to meet regulatory rules.

‘A better way’ for music business –
The papers filed with the Securities and Exchange Commission offered the most detailed look yet at the finances of Spotify.

The company said that revenue jumped by more than 38 percent in 2017 from a year earlier to 4.09 billion euros ($4.99 billion).

But the eye-popping rise of Spotify has yet to translate into a stable bottom line. The company said its net loss widened sharply last year to 1.24 billion euros ($1.51 billion).

“We have incurred significant operating losses in the past, and we may not be able to generate sufficient revenue to be profitable, or to generate positive cash flow on a sustained basis,” the company said as it listed the risk factors.

Spotify, which was founded in 2006 and launched operations in 2008, has led a major shake-up of the music world by allowing users to select on-demand from its library of 35 million songs.

With streaming leading the way, the global recorded music industry for the last two years has produced solid growth for the first time since the jolt of the internet era.

Spotify in its filing boasted that it finally found a way to monetize online music after years of piracy and free online content.

“We set out to reimagine the music industry and to provide a better way for both artists and consumers to benefit from the digital transformation of the music industry,” it said.

– Nearly $10 billion paid back –
Despite loud protests against the company in the past by artists ranging from Taylor Swift to Radiohead who say that streaming short-changes creators, virtually all well-known Western musicians have come onboard and now stream on Spotify or its rivals.

Charting out the risks, the company said it had faced six lawsuits since July alleging unlawful reproduction or distribution.

But as of last year, the company said it had paid more than eight billion euros ($9.76 billion) back to rightsholders for the use of their music on the service.

Especially controversial with artists has been Spotify’s free tier, which is backed by advertising.

Spotify in its filing called the advertising-backed service a crucial part of its business model, saying that the tier’s revenue grew 41 percent last year and has helped bring in 60 percent of the users who eventually buy subscriptions.

Spotify said that Europe was its largest region, with 37 percent of its users. Its three largest markets were the United States, Brazil and Britain.

MUSIC

5 Things To Expect In Afrobeats In 2025

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5 Things To Expect In Afrobeats In 2025 | fab.ng

Afrobeats is poised to reach unprecedented heights in 2025 as Nigerian music continues its remarkable global ascent.

The genre’s explosive growth over the past five years has transformed the international music landscape, with Nigerian artists pioneering innovative sounds and breakthrough collaborations across continents.

Industry experts predict that 2025 will mark Afrobeats’ most significant year yet. This is because Nigerian superstars leverage their growing influence to push creative boundaries and forge new paths in the global music scene.

The commercial success of Nigerian music has created a ripple effect. Consequently, this inspires a new generation of artists and producers who are eager to contribute to Afrobeats’ evolution in 2025.

The momentum behind Nigerian music shows no signs of slowing, with record-breaking streaming numbers, sold-out international venues, and prestigious award recognition becoming increasingly common.

As Afrobeats prepares to dominate charts and festivals throughout 2025, fans can anticipate a year filled with groundbreaking releases.

Also, high-profile collaborations and possibly some dramatic industry dynamics are not exempted.

This artistic renaissance spans multiple fronts – from innovative musical fusions to ambitious visual productions – suggesting an exciting period ahead for Nigerian music enthusiasts.

The year promises to deliver everything from chart-topping singles to headline-grabbing rivalries. Furthermore, this would set the stage for what could be a defining chapter in Nigeria’s musical journey.

5 things to expect in Afrobeats in 2025

1. Grammy Glory

A Nigerian artist is preparing to secure the Best African Music Performance award at the Grammy Awards on February 3, 2025. Fans eagerly anticipate Nigerian artists dominating multiple categories and celebrating significant victories.

2. Hit Song Domination

Afrobeats’ global ascent has been fuelled by a string of hit songs. They have played a crucial role in breaking down barriers and captivating international audiences.

Following a relatively subdued 2024 with a limited number of crossover hits, Nigerian stars will undoubtedly strive to deliver a wave of chart-topping singles in 2025.

Fans can also anticipate exciting collaborations as Nigerian artists continue their tradition of combining their talents to create groundbreaking music.

3. Album Releases Galore

2025 promises to be an exciting year for fans, with several highly anticipated album releases on the horizon.

The likelihood of multiple hit records increases significantly with the imminent releases from prominent artists. Predicting, these artists could be Davido, Burna Boy, Omah Lay, Kizz Daniel, Tiwa Savage, OdumoduBlvck, Ruger, and Adekunle Gold.

4. The Rise of New Stars

Each year, a new crop of talented artists emerges, transitioning from obscurity to stardom. 2025 is expected to introduce a fresh wave of breakout acts. These acts will play a defining role in shaping the future of Nigerian music.

5. The Inevitable Celebrity Feud

Although undesirable, celebrity disputes are not uncommon within the Nigerian music industry. New rivalries will explode in Nigerian music in 2025. Old enemies will reignite their past conflicts.

Music fans should expect dramatic clashes between celebrities throughout the year. These industry battles will keep social media buzzing.

Check here for more music updates.

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FAB FRESH

Qing Madi Delivers A Soulful Performance Of “Favourite Pyscho”

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Watch Qing Madi Perform "Favourite Pyscho" Soulfully | fab.ng

Rising Afro-RnB sensation Qing Madi launches into 2025 with a mesmerising performance on the prestigious COLOURS platform, showcasing her latest single, “Favourite Psycho,” against their signature minimalist backdrop.

The artist commands the space with a magnetic presence, her voice running through each sound with masterful control and emotional authenticity.

The song mixes Afrobeats drums with modern R&B sounds. Strong drum patterns keep a steady beat in the background. Smooth keyboard sounds and rich chords play softly under Qing Madi’s singing.

The music stays subtle and doesn’t overpower her voice, letting her take centre stage.

As she performs, Qing Madi navigates the complex emotional landscape of her lyrics with remarkable nuance. Her vocal delivery shifts seamlessly between powerful belting and intimate whispers, reflecting the song’s exploration of love’s contradictions.

The narrative unfolds through vivid metaphors and raw confessions, painting a picture of a relationship caught between passion and pain, trust and suspicion.

The chorus showcases her exceptional range, with layered harmonies adding depth to the hook’s memorable melody. Each verse delves deeper into the story, building emotional tension through carefully crafted lyrical progression.

The bridge section provides a particularly poignant moment, stripping back the instrumentation to highlight the vulnerability in her voice.

Throughout the performance, Qing Madi demonstrates why she’s emerging as a defining voice in the contemporary Afro-RnB scene.

Her ability to blend cultural influences while maintaining authentic emotional expression sets her apart.

The COLORS performance serves as a powerful statement of artistic identity, introducing her unique sound to a global audience while staying true to her musical roots.

The result is a spellbinding display of talent that leaves viewers eagerly anticipating her next moves in the industry.

Stream the song below.

Check out more music updates here.

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MUSIC

Olamide & Asake Officially Part Ways; Alleged Details Of Contract Termination Emerge

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Olamide, Asake officially part ways | fab.ng

YBNL Music founder Olamide has approved the early contract termination of artist Asake, videowheelztv reports.

The contract dissolution grants Asake ownership of his master recordings from his tenure with the label. Both parties have established a 10-year royalty-sharing arrangement to continue the financial terms of their original agreement.

The separation took place in recent months, following Asake’s release of his album “Lungu Boy.”

Speaking on the separation, Olamide reportedly said:

I didn’t create YBNL because I wanted to make money. I created it because I wanted to see other young people grow, so if any artist under me wants to leave, they are free.

He added more specifically that,

Asake has done his part, and I’m proud of him.

Reports earlier this week revealed that Asake removed all YBNL-related content from his social media profiles and unfollowed his connections, including Olamide.

Sources indicate that Olamide extended a new contract offer to Asake following the expiration of his initial YBNL agreement.

Despite Olamide’s attempts to secure Asake’s continued partnership, the artist declined the offer, choosing to separate from the mentor who significantly contributed to his international success.

An insider disclosed that the situation reached its conclusion two weeks ago when Asake definitively ended negotiations, expressing his intention to operate independently.

The development marks a significant shift in their professional relationship, which began in 2022 when Asake first signed with YBNL.

During his tenure with the label, Asake achieved remarkable success, releasing multiple hit singles and notably selling out London’s O2 Arena on two occasions.

Check out more music updates here.

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