Spotify Valued At  $3 Billion

According to the Wall Street Journal, Spotify’s latest financing round — which includes investment from financial institutions like Goldman Sachs — will put the company’s value over $3 billion (for some context, the somewhat similar subscription service Netflix is worth about $4 Billion). Given that Apple’s getting ready to unveil their own streaming service, it’ll be interesting to see how the marketplace evolves as money keeps flowing toward privately-held groups like Spotify Ltd. It’s also interesting amid reports that the company’s current structure is losing tons of money.

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Comments (11)
  1. quit giving them money you sods.

  2. What’s with the Spotify backlash on here? Many of you have been complaining that artists receive pennies on the dollar with their streaming service, but most of you are probably pirating most of your music anyway. My listening output has increased substantially , and I’ve even begun a vinyl collection with many records I heard initially on Spotify.

    I’ll stop sucking their dick, but bottom line is: I don’t pirate anymore, and I’m listening to more music. What gives?

    • So because you’ve stopped outright stealing music, and because you assume everybody is a crook like you, that its alright to screw artists out of the ability to make a living? That’s brilliant. I don’t know how you make a living but (i assume it involves theft of some sort) if you were suddenly paid – lets see

      It takes ten thousand plays to make 50 cents on Spotify
      Times two minutes per play (short song) = 20,000 minutes
      50 cents for 5 hours of work = 10 cents an hour
      40 hours a week = $4.00

      OK, if you were suddenly paid $4.00 a week for your work, and some dumb ass told you that he has been buying more of your stolen goods( because he sees more of them for free now) would you finally see how monumentally idiotic your assumption is?

  3. Congrats, guys! Now would you mind giving more than a fraction of a fraction of a penny to the guys who made you rich?

  4. Also, for those here/on Twitter bringing up the concept of “spotify getting rich while artists are getting poor,” you’ve definitely hit an interesting tension of what’s going on and I’m not trying to discount that. But this is about valuation — in this case, it’s usually a “present value” calculation that’s an estimation of a company’s value based on potential future gains — so they’re not rich by any means yet (the capital provided by places like GS and VCs probably provides for their current operating costs). But, say the company goes public in a few years — CNN Money speculates that valuation might be as high as $12 billion — then it’ll be pretty interesting to see what the breakdown is.

    • It’s definitely overvalued. Spotify may be popular but they haven’t shown the ability to generate any sort of cash flow.

      Hopefully they can find a way to make some money without requiring payment for the most basic of their services. Adding some incentives to get a premium account might be a good idea.

      • Oh, and I was talking about CNN’s speculation being too high

      • Jeffrey Sobieraj  |   Posted on Nov 12th, 2012 +1

        Well one pretty big incentive is the ability to stream music from a phone. I’ve basically condensed my entire life now into my phone. But I agree, 9.99 is steep just for that option.

  5. I’m annoyed that Spotify for PC takes up more system resources than iTunes. Need to work on streamlining that.

    Netflix was worth about $17 billion a year ago before the stock collapsed…!

  6. I totally agree that the market is losing money and that’s why I can’t understand why spottily is valued at 3 billion dollars. But like you said, it’ll be interesting to see how the market place evolves and it will only tell in due time.

    http://blog.sprinklebit.com/spotify-valued-at-3-billion-wins-new-round-of-funding/

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