Spotify is now evaluated to be worth $16 billion
Spotify is now is being valued at $16 billion, according to a recent Reuters report. This figure is $3 billion higher than similar trades until June of 2017. GP Bullhound, a technology investment and advisory firm, led an investor survey that estimated Spotify to be worth $50 billion in only a few years.
The music industry’s leading music streaming service is currently in high demand for shares. Furthermore, it has extraordinarily strong subscription numbers, leading some to estimate that the company could be worth $20 billion when it goes public. It currently has 140 million active users. They had five million paying customers back in 2012, but have since transitioned 60 million of them to pay for the service — making nearly half of its users paying subscribers.
These positive reports could be the result of Spotify having a leg up on its competitors when it comes to rights deals with major record labels.
With all of this positivity, though, Spotify’s long-term success and stability is difficult to predict because their subscription rates aren’t fixed; rather, they differ depending on the location. Many of their premium users have the premium account packaged as bonus, such as with their mobile data package, or at a steeply discounted rate.