Despite years of losses, Spotify dominates the world’s music services. However, SvD asks, can the Swedish IT wonder retain its leading position when its main rivals are global giants such as Google, Apple and Tencent?
Editor-in-chief at the newspaper Musikindustrin Lars Nylin, comments, “There is nothing acute that would change Spotify’s market position in the next six months, as far as I can see. Although we do not know how the company’s IPO is going to go.” On 3 April, the company will begin trading on the New York stock exchange. Initial estimates have valued the company at SEK 184 billion; money that could be crucial if competitors start to make their own investments.
The flotation is not Spotify’s only card, however. At the end of 2017, the company signed a huge deal with Chinese internet giant Tencent’s music division Tencent Music Entertainment (TME) so TME now owns 7.5% of Spotify’s shares and Spotify owns 9% of TME. This gives Spotify a better hand in licence negotiations with large record companies. (SvD bus: 11)
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