Tag Archives: Spotify

Spotify plans to launch hardware device

A few days ago, Spotify announced that it will announce some news on April 24th. So far, there has not been much information on this subject but it is speculated that it will be a hardware device for handling music in the car.

Spotify certainly has problems generating profit. The company’s revenues grow from year to year, but more and more money is given to artists. From the beginning, the company did not make any profit, but it recently announced a several billion profit in 2021. Spotify understood that they do not earn money on streaming music, which is why the company decided to release the device, which will be available for an additional fee.

Spotify’s in-car music device

According to The Verge, several existing customers of Spotify got an offer to purchase the device together with the above-mentioned device. The price ranged from $ 12.99 to $ 14.99 per month in subscription model. Customers were informed that the device would have built-in data transmission and could operate independently of the smartphone. There is also information that voice control will be available and the device will have support for Alexa’s assistant from Amazon. As part of the subscription, the user would receive a small, round device with buttons to control the device and the LED screen in the center.

It’s difficult to say whether this is a good decision and whether this device is actually needed. More and more cars are equipped with a radio with a Bluetooth module and the connection of a smartphone to the car radio takes a few seconds. For now, however, this is pure speculation, but the first pictures of the device have already appeared, which could indicate that the work on the device is already far advanced.

 

Sources:

https://www.theverge.com/circuitbreaker/2018/4/6/17207452/spotify-car-music-player-hardware-leak

https://www.forbes.com/sites/davidphelan/2018/04/07/hey-spotify-streaming-giant-rumored-to-launch-4g-smart-music-player-for-the-car/#1af95f342fe7

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Spotify’s bizarre IPO

The stock exchange debut of Spotify – the largest music streaming service will be coming soon. However, this is not a normal Initial Public Offering (IPO), in which the founders or major shareholders decide to sell some part of the shares and let the company go public. Instead, Spotify will let the minority shareholders or investors who currently hold company shares sell their stake, the ones who could not get rid of them earlier. Generally speaking, this will not be a classic IPO, because Spotify as a company will not sell its shares, but minor investors will.

This will be the next big stock exchange debut of the tech giant after Snapchat company that went public in 2017. What is the reason for this debut? At least a few. Until now Spotify was a private company, which did not have to provide financial data, and thus the value of the company was unknown. After the debut, the market will verify the company’s financial data and evaluate it, so that existing shareholders get to know the true value of the company and will be able to withdraw from this investment (with profit or loss).

CEO – Daniel Ek during Spotify’s investor day in NYC

Various analysts have prepared different company valuations. The biggest ones are talking about $ 40 billion, which is very strange considering that Spotify generates huge financial losses every year and the founders themselves admit that it will be possible to generate profit only after achieving the effect of scale. Today, Spotify has around 70 million paid subscribers all over the world and it is not enough for the company to generate profit. Daniel Ek co-founder and CEO, calms down “Spotify has never been a normal kind of company … our focus is on the initial splash. Instead, we will be working on trying to build, plan, and imagine for the long term “.

On the other hand, existing investors believe in the company and do not plan to withdraw from the investment. Mitchell Green, the founder of Lead Edge Capital, one of the first investors of Spotify says that “Bulls on Wall Street think Spotify to generate $ 2 billion in operating profit in a few years.” Spotify founders Daniel Ek and Martin Lorentzon hold a total of 40% of the company’s shares and over 80% of votes at the general meeting of the company, which means that they are still in full power over the company.

 

Sources:

http://money.cnn.com/2018/04/02/investing/spotify-investor-ipo-lead-edge-capital/index.html

What to expect when Spotify goes public Tuesday

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Apple Music and Spotify has a competitor – YouTube Music

The popular video hosting has decided to withdraw one of its functions in a single application. YouTube Music is designed for streaming clips, holds licenses for more than 30 million songs (like the Apple Music or Spotify) and is able to search for music by artist, album or title. Currently the application is only available in the United States.

YouTube Music is available for free, but there is also a paid subscription, which gives advantages. October 28 in the United States there was a pay version of YouTube with the prefix in the name Red. It costs $ 9.99, and for users of iOS – $ 12,99. The presence of a paid subscription YouTube Red allows you to store music in a new offline YouTube Music, disables ads and provides an opportunity to listen to the tracks in minimized mode.

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