Spotify Will Officially Go Public On April 3

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He also confirmed that Spotify will announce financial guidance for Q1 2018 on March 26, the week prior to trading. As a result, Spotify said in its filing that "the trading volume and price of our ordinary shares may be more volatile".

Daniel Ek, the company's 35-year-old co-founder and chief executive, said: "For us, going public has never been about the pomp or circumstance of it all".

"You won't see us ringing any bells or throwing any parties", Ek said. The service has 159 million users, with 71 Million of them being paid users. The startup is taking the atypical route of a direct listing, offering new shares to trade in the open market without banks underwriting the offering.

BEA Music stressed, "With downloads, which generate more than 9 million sales, digital now represents 54% of all music sales or more than €39 million, the converse of a year ago when sales of CDs, vinyl and DVDs had a 56% market share".

Spotify's success underscores the cultural shift in how we play and pay for music.

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Last year, the Xbox Game Pass launched, a $10 per month subscription service where players get access to a library of games, with new additions rotating in regularly.

The direct listing will allow the Stockholm-based company to begin life as a debt-free public company, enabling it to complete a series of transactions agreed in December with late-stage investors that converts their debt holdings into equity, freeing it of heavy financing costs that drove up 2017 losses.

Because the company will not issue any new shares, it did not specify a listing price. Amazon Prime service subscribers can get the music service for $7.99 a month.

McCarthy spelled out Spotify's long-term operating targets for generating sustained free cash flow, with annual revenue growth between 25 and 35 percent and gross margin between 30 and35 percent - ambitious for a loss-making company.

Will Spotify's IPO be a hit? "I don't think she's a Warriors fan", Cue said, jokingly referring to a 2017 incident in which he seemed to yell at the singer to sit down during the Golden State Warriors' NBA championship game against the Cleveland Cavaliers, for whom Rihanna was cheering.

Helping listeners find new bands and songs is an "infinitely larger" opportunity in music than so-called discovery was for video, McCarthy said, comparing Netflix's rapid rise from mail-order DVD distribution into a streaming media service to Spotify's audio streaming business.

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