The Cellar  

Go Back   The Cellar > Main > Arts & Entertainment

Arts & Entertainment Give meaning to your life or distract you from it for a while

 
 
Thread Tools Display Modes
Prev Previous Post   Next Post Next
Old 02-05-2017, 02:54 PM   #1
xoxoxoBruce
The future is unwritten
 
Join Date: Oct 2002
Posts: 71,105
Spotify

Spotify is in trouble and may die this year.

Quote:
A major problem is that Spotify simply isn’t making enough money. Go figure. They’re growing fast, but the underlying financials are rotten. “Three to five years ago, you could have an IPO based solely on user growth and promises of the future,” a TechCrunch source relayed.

“But the financial climate has changed now. Today you have to show some path to profitability, especially at the valuation that Spotify has been targeting.”

That might explain why Spotify is frantically trying to renegotiate its major label licenses. Currently, the company is paying at least 70% to the big three: Universal Music Group, Sony Music Entertainment, and Warner Music Group. According to data released last year, Spotify has paid a cumulative $5 billion in royalties since inception, none of which includes overhead, taxes, and guaranteed equity shares (if an IPO occurs).

All of which might explain why Spotify is hemorrhaging cash.
The big problem
Quote:
But there’s a much bigger problem here. Actually, 1.5 billion of them. Last year, Spotify started taking monster loans, with heavy strings attached. That includes loans of both $500 million and $1 billion, with investors in each pool making hideous demands if an IPO didn’t occur within one year.
And the IPO isn't happening.
__________________
The descent of man ~ Nixon, Friedman, Reagan, Trump.
xoxoxoBruce is offline   Reply With Quote
 


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

All times are GMT -5. The time now is 09:10 AM.


Powered by: vBulletin Version 3.8.1
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.