MUSIC

Spotify files to go public, eying streaming growth despite losses

Published

7 years ago

March 1, 2018

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

Davido To Headline UK Stadium Concert Alongside 50 Cent & Mary J Blige

Published

2 days ago

December 17, 2024

Reporter

Davido to headline UK stadium concert | fab.ng

Davido, one of Africa’s most successful music exports, will headline the highly anticipated 2025 concert alongside global icons 50 Cent and Mary J. Blige.

Known for his chart-topping hits, Davido has earned multiple awards and packed arenas worldwide, solidifying his position as a global superstar.

His success continues to grow, and on July 3, 2025, he will reach another career milestone. This is when he headlines the 60,000-capacity Tottenham Hotspur Stadium in the United Kingdom.

This concert will be a significant moment for the Nigerian singer, as it marks his first headline stadium show in the UK.

Although Davido has sold out several arenas, including the iconic O2 Arena, this stadium performance represents an exciting leap in his career.

He will share the stage with American rap legend 50 Cent and Mary J. Blige, a nine-time Grammy winner. Both artists bring over two decades of global success to the event.

The concert, presented by Iconic, is part of their ongoing series of headline shows that feature an impressive lineup of artists from various genres.

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A post shared by Davido (@davido)

These performances provide fans with a unique live music experience. Also, it will be celebrating different eras of music while showcasing the talents of diverse, influential artists.

As a four-time Grammy nominee, Davido’s international appeal is undeniable. Fan favourites will fill the concert because of his extensive collection of hit singles.

Additionally, in March 2025, he will release his much-anticipated fifth album, 5ive, which is expected to add even more excitement to his setlist.

This performance will not only reinforce Davido’s status as a global music icon but also solidify his place alongside other legendary artists like 50 Cent and Mary J. Blige.

FAB FRESH

Burna Boy Set To Release New Single, “Bundle” This December

Published

2 days ago

December 17, 2024

Reporter

Burna Boy to release new single 'Bundle' | fab.ng

Burna Boy is gearing up to release a new single, “Bundle,“ as he prepares to close out 2024 in grand style.

Following a hectic and record-breaking year, the African Giant aims to soundtrack the Detty December celebrations with this highly anticipated release.

In a recent update on his X (formerly Twitter) account, Burna Boy confirmed that the new single will drop on Wednesday, December 18, 2024.

The announcement came after he teased the song on social media, sparking excitement among his fans.

His long-time collaborator, Telz, produced multiple hits on Burna Boy’s Grammy-winning album, “Twice As Tall.” He also hinted at the upcoming release with a similar post.

“Bundle” marks the second release of 2024 for Burna Boy, following the success of his Grammy-nominated single “Higher.”

The music video for “Higher” took fans on an emotional journey back to his hometown of Port Harcourt. He showed his deep connection to his roots.

This single wraps up what has been an extraordinary year for Burna Boy, filled with groundbreaking achievements.

Earlier in 2024, he became the first African artist to perform at the Grammys main ceremony. However, he shared the stage with rapper 21 Savage and R&B legend Brandy.

Burna Boy also broke records for the highest-grossing concert by an African artist in both the United States and Canada. Further, this solidifies his global dominance.

“Bundle” is expected to be part of Burna Boy’s upcoming 8th studio album. Apparently, the album is rumoured to be titled “No Sign of Weakness“, slated for release in 2025.

As Burna Boy continues to break boundaries and elevate Afrobeats on the global stage, fans eagerly await what promises to be another hit song to close out the year.

FAB FRESH

Timaya Releases Music Video For New Single, “Mase”

Published

3 days ago

December 16, 2024

Reporter

Timaya drops music video for new single 'Mase' | fab.ng

Award-winning Afro-dancehall artist Timaya has officially dropped the highly anticipated music video for his latest single, Mase, directed by the acclaimed PinkLine.

The video is a visual masterpiece that perfectly captures Timaya’s signature charisma, engaging storytelling, and high-energy performance style.

Vibrant and artistic, the video is a testament to Timaya’s growth as an artist, showcasing his evolution while staying true to his Afro-dancehall roots.

Every frame radiates creativity, drawing viewers into Timaya’s unique world of music and culture.

The release of Mase is particularly significant as it arrives just weeks before the highly anticipated third edition of the Timaya Day Concert, set for January 1, 2024, at the Samson Siasia Stadium in Bayelsa.

This annual event has quickly become one of Nigeria’s most important New Year celebrations, attracting thousands of fans who are eager to enjoy an electrifying live music experience.

As the event’s popularity continues to grow, the 2024 edition promises to be bigger and better than ever.

Now in its third year, the Timaya Day Concert is much more than just a music festival; it serves as a homecoming event that celebrates Timaya’s remarkable journey from his humble beginnings in Bayelsa to becoming an internationally recognised music icon.

With Mase already creating waves, excitement for the concert is at an all-time high.

This year’s concert will feature performances from top Nigerian stars, including D’banj, Phyno, and Portable, who will deliver a thrilling show filled with their biggest hits.

Fans are in for an unforgettable night of unforgettable performances and high-energy vibes.

Looking ahead to 2025, the Timaya Day Concert will continue to set the bar high, offering an experience filled with powerful music and a celebration of Afro-dancehall excellence.

Watch the video below.