On Thursday, Spotify announced that it had reached 70 million subscribers. This announcement came amid reports that claimed that the world’s largest music streaming company has decided to go public in the upcoming months.
Since its last update in July, the Swedish company, valued at up to $20 billion (roughly Rs. 1.26 lakh crore) has added on to 10 million paying subscribers.
While Spotify announced its new subscriber base online, it did not change the number for total users. In June, it had 140 million active users including those who make use of Spotify’s free, advertising backed segment.
Spotify’s strongest competitor is Apple Music, which was launched in 2015 as people drifted from the purchased downloading of songs on iTunes.
Apple in September said that its streaming service had a total of 30 million paying subscribers, which is a substantial gap in comparison to Spotify but it even indicated that Apple Music is growing quickly.
The subscriber announcement came out when Spotify decided to go public, using an uncommon direct listing rather than the usually opted IPO.
As per the Wall Street Journal, CNBC and Axios, Spotify had made way for direct listing by confidentially filing paperwork at the New York Stock Exchange.
Axios said that Spotify aimed at going public in the current quarter ending March.
A direct listing could prove to be helpful for Spotify as it could save on filing costs.
Spotify and its rivals, who allow unlimited, on-demand listening to music, are responsible for igniting the first significant growth in the music industry since the inception of the internet.
In 2017, the US music consumption jumped by around 13%, which has been the sharpest increase in recent times.
Spotify has also witnessed criticism and legal actions from artists.
Last week, Wixen Music Publishing, charged Spotify with a $1.6 billion (roughly Rs. 10,000 crore) suit. The publisher accused the latter of not securing proper licenses while building a 30 million song catalog.