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.

FAB FRESH

Phyno Drops New Album, “Full Time Job”, Featuring Fave, Burna Boy, NSG & More

Published

1 day ago

October 4, 2024

Reporter

Full Time Job: Phyno Drops New Album | fab.ng

Phyno has dropped his fifth studio album, “Full Time Job.” Previously, he released “Something To Live For” in 2021. Before that, he put out “Deal With It” in 2019. Additionally, he created “The Playmaker” in 2016. He also debuted with “No Guts No Glory” in 2014.

To begin the rollout, Phyno teased his fans. Specifically, he released “Time of My Life,” which features British rapper ArrDee. Now with this new album, he steps fully into his role. As a result, he is both a cultural flag-bearer and an elder statesman. Moreover, he skillfully combines indigenous sounds with global influences.

Phyno collaborates with numerous artists on this project. For instance, the album features Cheque and Fave. Furthermore, it includes appearances from Burna Boy and Johnny Drille. In addition, Chip and ArrDee contribute their talents. Finally, the UK collective NSG joins the lineup as well.

Throughout the album, Phyno shows his versatility. Most notably, he uses Igbo lyricism in modern sounds. For example, “Nwoke Esike” displays choral elegance. Meanwhile, “Men Don Show Face” charms with highlife elements. Subsequently, “Back Outside” incorporates amapiano influences. Additionally, Phyno explores R&B territory with the track “Deep.” Finally, he delivers folksy soul on “Sweet Karma.”

Overall, the album spans 15 tracks. Consequently, it provides a comprehensive show of Phyno’s artistic range. Through each song, he demonstrates his musical evolution. As a result, “Full Time Job” stands as a testament to his growth as an artist. Ultimately, this album reinforces Phyno’s position in the music industry.

Stream the album below.

Check out more music updates here.

MUSIC

Angélique Kidjo & Davido Drops Music Video For “Joy”

Published

2 days ago

October 3, 2024

Reporter

Grammy Award-winning artist Angélique Kidjo continues to celebrate the success of her hit single “Joy.” She features Nigerian music superstar Davido in the song. Following the song’s positive reception, Kidjo has released a new music video, stating, “We received so much love for that song that we wanted to celebrate JOY once more with you!”

The new music video builds on the earlier visualizer. That included the song’s lyrics, encouraging fans to connect with its uplifting message. As the title, “Joy” is all about celebrating happiness and strength, even in the face of adversity.

Angélique Kidjo and Davido sing about finding joy through pain and discovering light in the darkest moments in this track. The lyrics narrate a journey from despair to hope. Further, it embraces resilience and the will to rise each day, despite life’s challenges.

Dammy Twitch directed the video and Blessing Uzzi produced it. The music video shows off a visually stunning experience. Kidjo and Davido’s performances are filled with energy and emotion.

Moreover, they perfectly capture the essence of the song’s message. Beautifully, the video’s colourful and dynamic scenes reflect the spirit of joy, showing that happiness can be found even in difficult times.

This music video is a reminder that joy is not just an emotion but a powerful state of being that can uplift and inspire.

Angélique Kidjo and Davido’s collaboration resonates with audiences. Indeed, the track offers hope and encouragement to those facing struggles. Through “Joy,” the artists deliver a timeless message of finding strength and happiness no matter the circumstances.

Watch the video below.

Get more music updates here.

FAB FRESH

New Video: Greatman Takit & GospelOnDeBeatz – Celebration

Published

3 days ago

October 2, 2024

Reporter

Celebration Video: Greatman Takit & GospelOnDeBeatz | fab.ng

Gospel sensation Greatman Takit has collaborated with acclaimed producer GospelOnDeBeatz (Gospel Obi) to release a music video for their energetic track “Celebration.” The video is a standout single from their collaborative album “Ghetto Gospel.”

The music video shows dancers in bright red outfits, moving with power and skill. Greatman Takit, on the other hand, performs “Celebration” with energy and passion. He matches the strong beat perfectly as his presence on screen makes the song even more exciting.

The song proves the artists’ deep faith. It talks about being grateful to God. It shows how staying strong in faith helps overcome problems. “Celebration” tells the story of beating life’s challenges through belief in God.

The artist sings about God’s gifts with joy. He thanks Him for keeping him safe. Also, he celebrates His love openly. The song creates a feeling of complete happiness. It makes listeners feel like winners. The artist shows how faith leads to victory.

The artist and dancers turn their gratitude into a dramatic musical experience using dance. This is seen as every part of the song radiates thankfulness and triumph.

The song’s lyrics, including compelling lines such as “I can’t deny it, baba yi ti fe mi” and “Tribulation come I call Jesus,” call listeners to join and deeply rejoice over spiritual triumphs.

Greatman Takit and GospelOnDeBeatz created this powerful song that fills listeners with hope. The anthem strengthens people’s faith and celebrates victory through God.

These artists worked together perfectly. Their song does more than entertain. It lifts spirits high. The music inspires everyone who hears it. Fans would feel motivated after listening to the track.

Watch the video below.