Despite the competition, Spotify was able to grow its user base at an even faster pace than usual and now boasts over thirty million users. Streaming now generates nearly $3 billion in revenue, which allowed for the first growth in recorded music sales in many years.
At the end of March, Spotify raised over $ 1 billion in convertible bonds that hold- ers can convert into a specified number of shares. The issue proves that the markets still consider Spotify a good investment, though the involvement of the equity firm TPG and hedge fund Dragoneer suggests that mostly high-risk takers are taking the bite.
Spotify, like other streaming services, has yet to post a profit. In France, Deezer cancelled their plans to launch an initial public offering in the fall of last year at about the same time that talk about Spotify’s own IPO, for likely over $8 billion, was quelled.
Source: Berklee College of Music