Tag Archives: Spotify
With the new app, Spotify users can use an Apple Watch to control music, favorite songs playing on a connected iPhone, and choose which device to play songs on. Some features are still missing, however, such as downloading songs to play offline. And Apple Watches with built-in 4G LTE can’t stream music to wireless headphones, a feature that would appeal to music-loving runners.
Part of the appeal Apple imagined the Watch having was to avoid having to pull a smartphone out of a pocket to control an app’s functions. Streaming music is tailor-made for such a device, as listeners frequently want to change volume, switch tracks, or move around playlists.
“With this new app, users can enjoy an improved experience with better control and the ability to seamlessly connect to your speakers or devices,” Spotify said in a statement announcing the app. “The new integration with Apple Watch makes accessing your recently played songs simple, even with your phone in your pocket.”
Spotify is the most popular music app, with more than 190 million users. Apple Music has been growing quickly, however, having a user base of more than 50 million users. Releasing a Spotify app for the Apple Watch may strengthen the music service’s appeal among Apple’s loyal customers.
Spotify said it will be rolling out the new app to Apple Watch owners during the coming week. Spotify users will need to install the latest iPhone version of Spotify from the App Store.
LONDON (Reuters) – Music streaming leader Spotify (SPOT.N) on Thursday reported results mostly in line with forecasts, as the number of paid subscribers rose 10 percent over the last three months, but revenue growth was slowed by new European data privacy rules.
FILE PHOTO: The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 3, 2018. REUTERS/Brendan McDermid/File Photo
Monthly subscribers, which account for around 90 percent of revenue, rose to 83 million at the end of June, up from 75 million in the first three months of 2018. Analysts, on average, was looking for 82 million subs, a Thomson Reuters poll showed.
Second-quarter revenue rose 26 percent to 1.27 billion euros, roughly in line with market expectations. Fifteen analysts polled by Thomson Reuters had forecast, on average, 1.26 billion euros.
“We did see some GDPR disruption across our European markets during Q2 but seem to be largely past that now,” the company said in a statement, referring to the European Union’s General Data Protection Regulation that came into effect in May.
Reporting by Eric Auchard in London; Editing by Adrian Croft
(Reuters) – Spotify Technology SA (SPOT.N) said on Friday it uncovered 2 million users of its free service who had blocked advertising without paying, highlighting a potential revenue risk for the soon-to-be public company.
In an amended version of the share prospectus filed last month, the Swedish company said it continues to be impacted by third-party attempts to gain unauthorized access to its premium service.
The music-streaming company previously included the 2 million users in calculations for some of its key performance indicators, including MAUs, ad-supported users, content hours, and content hours per MAU. More here
Spotify said it currently does not have the data to adjust previously provided key performance indicators, and as a result certain metrics may be ‘overstated’ in its prospectus.
The company had 157 million active users as of Dec. 31, of which about 71 million were paid subscribers who access ad-free versions of the service, according to its website.
Spotify had filed this week for a direct listing of its shares, instead of a traditional IPO.
The direct listing will let investors and employees sell shares without the company raising new capital or hiring a Wall Street bank or broker to underwrite the offering.
Reporting by Arjun Panchadar in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta
LONDON/SAN FRANCISCO (Reuters) – Streaming music leader Spotify said on Thursday it has a clear path to profit as it spelled out to investors its growth plans and how it aims to fend off big rivals Apple Inc and Amazon.com Inc ahead of an April 3 listing.
Chief Executive Daniel Ek made a direct pitch to retail investors during a public webcast that stood in place of a traditional closed-door “road show” typically used to woo institutional investors in initial public offerings (IPOs).
The Stockholm-based company’s stock will hit the public markets in a unusual direct listing without traditional underwriters. Spotify must convince investors that its business is sound and that investors who buy shares in the public market debut won’t be hurt by unexpected volatility.
“You won’t see us ringing any bells or throwing any parties,” Ek said. “Since Spotify isn’t selling any stock in the listing, we’re really entirely focused on the long-term performance of the business.”
Ek portrayed Spotify as an underdog not tied to a major technology company. He pointed out that Spotify has more than twice as many paying users as its nearest rival, Apple, and that its strategy is to be an ubiquitous music service across phones, smart speakers and desktops from various makers.
Because the company will not issue any new shares, it did not specify a listing price. Based on private transactions, it is valued at roughly $ 19 billion, according to Reuters calculations. It has hired brokerage Morgan Stanley to match buy and sell orders to set its opening trading price.
Spotify has warned investors it faces a variety of risks.
It says the royalty costs it pays to artists and publishers are so difficult to calculate that in the past it has been unsure how much it owed, prompting what are known as “material weaknesses in internal controls” for each of the past three years with the danger of more in the future.
In addition, its music services are primarily delivered over devices such as Apple’s iPhone and Amazon.com’s Echo series of speakers, which could emphasize their own services over Spotify’s.
“Operating losses have grown with revenue, but the trend towards profitability is clear when you look at operating losses as a percentage of revenue,” the company said in the presentation in New York.
Revenue grew 39 percent to 4.09 billion euros ($ 5.04 billion) in 2017 from 2.95 billion euros in 2016, it said in a securities filing. At the same time, net financing costs of 855 million euros pushed up operating losses to 378 million euros from 349 million euros.
Reporting by Eric Auchard in London and Stephen Nellis in San Francisco; Editing by Susan Thomas and Peter Henderson
NEW YORK/SAN FRANCISCO (Reuters) – Music streaming service Spotify has filed confidentially for an initial public offering with the U.S. Securities and Exchange Commission (SEC) and is moving ahead with a direct listing in the first half of the year, a source familiar with the matter said on Wednesday.
If Spotify, with was valued at as much as $ 19 billion last year, goes ahead with its plans, it would make it the first major company to carry out a direct listing, an unconventional way to pursue an IPO without raising new capital.
It also mainly eliminates the need for a Wall Street bank or broker to underwrite an IPO along with many associated fees and could change the way companies approach selling shares to the public.
The confidential filing was initially reported by news outlet Axios.
Spotify is the biggest global music streaming company and counts Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O) as its main rivals. Reuters has previously reported Spotify was aiming to file for an IPO in late 2017 and list with the New York Stock Exchange early this year.
Spotify could not be reached for comment.
Spotify was sued by Wixen Music Publishing Inc last week for allegedly using thousands of songs, including those of Tom Petty, Neil Young and The Doors, without a license and compensation to the music publisher. It was unclear what the lawsuit’s effect would be on its IPO plans.
Wixen, an exclusive licensee of songs such as “Free Fallin’” by Tom Petty, “Light My Fire” by the Doors, “(Girl We Got a) Good Thing” by Weezer and works of singers such as Stevie Nicks, is seeking damages worth at least $ 1.6 billion along with injunctive relief.
Spotify still intends to proceed with a U.S. direct listing in the first half of 2018, despite the lawsuit, according to a source familiar with the matter. It has filed for the listing confidentially with the SEC, with Goldman Sachs, Morgan Stanley and Allen & Co helping arrange it, the source added.
Reporting by Greg Roumeliotis in New York and Liana B. Baker in San Francisco; Editing by Meredith Mazzilli
Facebook copies Snapchat, and Spotify copies Tidal.
The top music streaming service is planning to introduce lossless audio — or CD-quality music — to subscribers for a higher monthly price, according to a report in The Verge.
That report was based on a Spotify user source who got the option to sign up in what looked like a test of potential pricing, and some Reddit users who did, too. A Spotify spokesperson told the publication that “We are always testing new products and offers but have no news to share at this time.” Spotify gave the same statement to Mashable.
The pricing test offered users an upgrade to high-quality audio for between $ 5 and $ 10 more per month than the usual $ 10-a-month Spotify Premium. That would be $ 15 to $ 20 a month total for lossless audio Spotify subscribers. Read more…