Spotify stock opens at $165.90, giving streaming giant opening value of $29.5 billion

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Spotify made a splash with its long-awaited debut on the public market, opening at $165.90 a share, placing the company’s valuation at $29.5 billion — up significantly from their $8.5 billion valuation back in 2015. Opening figures turned out to be considerably higher than projected numbers from last month when privately traded stocks were going for as high as $132.50 a share. The Swedish streaming titan, trading as SPOT, is now on pace to be the third-highest U.S.-listed tech IPO in history, trumped only by Alibaba Group Holdings’ $233.9 billion and Facebook’s $81.74 billion. For its debut on the New York Stock Exchange, Spotify opted to circumvent the traditional IPO for a direct listing, which comes with its own advantages and disadvantages.

With a rare direct listing, Spotify is avoiding investment-banking underwriters and instead choosing not to raise any money for itself. The move effectively saved Spotify millions of dollars in fees, while still allowing early investors the opportunity to cash out. However, without any intermediaries, investors don’t have the common protections allowed in a typical IPO. This could be risky with the recent downturn of tech stocks accross the board as the market aims to find a stable price for Spotify shares.

Spotify’s IPO paperwork reveals that the digital streaming leader is burning through heaps of cash, clocking revenue last year nearing $5 billon, but posting a net loss of nearly $1.5 billion. Thanks to the emergence of licensing deals with major labels, Spotify is able to reduce royalty payouts, contributing to a growing gross margin. Even with Spotify’s closest competitor, Apple Music, in close pursuit in the U.S. market, Spotify is projecting a $6.6 billion revenue bump by the end of 2018, up 30 percent from last year’s total. Digital streaming has undoubtedly changed the music consumption landscape in recent years. Now the digital streaming landscape could experience it’s own seismic shifts as Spotify officially plants its flag on the NYSE.

Apple Music outpaces Spotify with The Weeknd’s ‘My Dear Melancholy,’

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Many of us spent Easter weekend crying in the mirror to The Weeknd‘s My Dear Melancholy, many times over. According to data from the record’s issue date however, a staggering 88% of U.S. listeners did so on Apple Music, despite Spotify’s considerable promotional advantages leading up to the release. In the first 24 hours, Apple Music listeners absolutely devoured The Weeknd’s latest, racking up 26 million streams, 6 million of which came by way of the Nicolas Jaar-assisted “Call Out My Name.” Comparatively, Spotify listeners added another 3.5 million streams to The Weeknd’s addictingly morose, brooding R&B/pop concept, but with nearly 120 million more subscribers paying for Spotify than Apple Music, the stats point to what could be a considerable shift in the digital streaming platform landscape, specifically in the U.S. market.

Not only does Spotify have strength in subscriber numbers, but the Swedish streaming titan also had two exclusive music videos from the EP, and it’s also where The Weeknd directed followers to stream the project upon release. Despite the tilt towards Spotify, Apple Music dominated the initial Melancholy traffic, and it isn’t the first time this has happened. Post Malone‘s inescapable “Rockstar” fared better on Apple Music in it terms of first week streams, along with last year’s More Life from Drake — by a whopping 33 million streams more than Spotify produced.

As of 2018, hip-hop has become the most widely-consumed genre in America, and with Apple Music having seemingly figured out the formula to fan engagement in the hip-hop arena, their campaign to outpace Spotify’s U.S. subscriber count this year could materialize as a direct result.

H/T: The Verge

 

The Chainsmokers Become 3rd Artist To Hit 1 One Billion Streams For More Than One Single on Spotify

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Following their massive performance at Ultra Music Festival 2018, The Chainsmokers continue to have a breakout week. The Chainsmokers have officially become the third act on Spotify to reach 1 billion streams on more than one song. The Grammy award-winning song “Don’t Let me Down” featuring Daya became The Chainsmokers’ second song to hit the

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Kainalu – Folds Like Origami

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Trent Kainalu is destined for success with his most recent track, “Folds Like Origami.” This dude has been blasting off the charts recently with tracks such as, “Finding Peace of Mind,” and for good reason. Kainalu has an insane knack for blending lo-fi electronic, disco, and psychedelic sounds into a masterful mix that screams radio

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Beats co-founder Jimmy Iovine set to assume reduced role at Apple Music in August

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The first chapter of Apple‘s foray into the digital music streaming marketplace is set to close with the impending departure of Beats co-founder Jimmy Iovine later this year. The music industry veteran is expected to leave his role at Apple Music in August and move into a “consulting role” after that according to The Wall Street Journal, largely passing off the day-to-day responsibilities of overseeing Apple’s music streaming platform. Last year reports broke that Iovine intended to leave Apple Music, though at the time the rumors were unsubstantiated and Iovine denied any planned departure.

Since the tech giant’s aquisition of Beats Electronics in 2014, steadily shifting away from the Beats Music brand has translated into a meteoric rise for the ensuing Apple Music brand that replaced it. Internally however, the total overhaul of Beats’ original platform and look over the last four years has distanced some of the platform’s top executives — including Dr. Dre. Iovine is just the next in line to hang it up, or at least take a backseat at Apple Music. The Interscope Records founder reportedly doesn’t quite fit the platform’s new model like he did half a decade ago, though the timing seems to work out quite nicely in his favor. Iovine’s compensation from the 2014 sale fully vests in August, likely making way for a mutual changing of the guard, while still allowing Apple to retain Iovine’s expertise and widespread label connections.

Earlier this year reports suggested that Apple Music could surpass Spotify’s US subscriber base by the summer. With Iovine stepping back and possibly fresh blood coming in to assume his responsibilities, look for Apple Music to continue to trend upward in 2018 as they close out Iovine’s incredibly successful run at the top.

YouTube plans to convert music listeners into paid subscribers by slamming them with ads

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YouTube Connect

It seems YouTube is taking a page from Spotify‘s business model, which has been successfully enticing its free users into paying premium tiers for years. During a recent SXSW panel, YouTube’s global head of music, Lyor Cohen, revealed that the streaming website has plans to bombard its heavy music listeners with more ads in the hopes of agitating them into paying for YouTube Go subscriptions. “There’s a lot more people in our funnel that we can frustrate and seduce to become subscribers,” says Cohen.

While the move will be frustrating for the millions of users who use the platform as a free streaming alternative, it’s a win for YouTube in terms of business. Either users will be converted into paid subscribers or YouTube will make loads of money from increased advertisement revenue. The move is thought to help make the company more competitive with Spotify, who currently leads all streaming platforms in overall subscribers. Artists and labels have long criticized YouTube for hosting millions of videos that violate music copyrights while earning YouTube profits.

YouTube’s new service is still expected to launch sometime this spring, with combined features of the existing YouTube Red and Google Play Music services into a single streamlined package.

Via: Bloomberg

Spotify Will Officially Go Public On April 3

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The biggest day for streaming music websites is upon us in less than three weeks. Spotify’s CEO and Chairman, Daniel Ek, gave a live presentation to investors and would-be investors in New York. Accompanied Ed was Spotify’s Head of Investor Relations, Paul Vogel. During the meeting, Vogel confirmed that Spotify will publicly list shares on

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Apple Music Reaches New Milestone For Paying Subscribers

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In early February, Apple revealed that the Apple Music streaming platform had 36 million paying subscribers to its service. Just a few months since then, Apple Music is now reporting a total of 38 million paying subscribers, and 8 million trial users. During his appearance at the SXSW conference in Austin Texas, Apple Music’s SVP,

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How To Get On Spotify Playlists With Different Spotify Playlist Curators

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Playlists have now become one of the most important aspects for artists today. Getting your music on highly followed playlist can generate thousands if not millions of streams for your music on Apple Music, Deezer, and Spotify. In this article, we’ll be talking about how to get on Spotify playlists. While many of today’s most

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This Is Now The Most Streamed Female Artist on Apple Music

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Even though she may not be dropping a new album in 2018, Rihanna’s ANTI LP dropped back in 2016. This week, on International Women’s Day, the 30-year-old musician became the first female artist to ever surpass two billion streams on Apple Music. Apple Music revealed the top 20 women in streaming on Thursday, with Adele,

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