The Spotify, which is one of the best and largest music streaming services today announced that they have 140 Million, active users. The company shared this numbers today with media. The company said that they’ve nearly 50 million users with premium plans and nearly 90 million users with the free plan. The number is very huge because the nearest competitor, which is the Apple Music is still behind with 27 million active users.
The Spotify is growing with tremendous speed, and they provide pretty good service. Also, they are the biggest music streaming service provider in the world with the huge amount of active users. But, the company is soon going to face the financial problems. The Spotify raised nearly $1 billion in debt at the start of 2016, a year ago. The company is expected to pay the penalty on the debt of $1 billion very soon. To avoid this, the Spotify is planning to go public. They are planning to bring their Initial Public Offering, to ease the financial problems they are facing and will face in future. The IPO will allow the company to avoid raising more money from the private investors and let their controlling stake dilute.
The Spotify is undergoing the new contracts with the Sony Music and Warner music. The deal is not complete yet, so they’ll probably wait for the deals to seal and then announce the public listing of the company. Currently, the company has sealed the contract with Warner music. They’ve not shared a bit of detail from the recent deal. The Spotify is looking forward to bring in more revenues with the contracts with Sony music and Warner Music.
According to the annual financial disclosure, the Spotify faced the loss of $389 million in the year 2016, which is the huge loss that is making things difficult for the company.