Earlier this morning, Axios reported that Spotify, the Swedish streaming monolith, filed for IPO (Initial Public Offering) documents with the Security and Exchange Commission at the end of December 2017. Their report speculates that the company is potentially eyeing a Q1 direct listing for their IPO, which means Spotify may go public sooner than anticipated.
How does that effect you, the music fan? At the moment, honestly, it doesn’t change much. At the end of 2017 we saw a slew of stories touting the power and influence of Spotify’s playlists—I even touched on it here—perhaps attracting the investors now eyeing Spotify as a service effectively propping up the music industry. That means you might see Spotify’s public appearance shift: After going public, Spotify will want to hold a positive media narrative, so don’t be surprised if they double down on playlists, live concerts, and perhaps more events connecting fans with Spotify’s brand.
Sit tight for now: You shouldn’t expect the price of a Spotify subscription to go up in the near future. When Spotify goes public, however, don’t be shocked if artists start to speak out against the company when they see how much it’s potentially worth. According to VentureBeat, Spotify may be valued at over $16 billion—and artists still receive fractions of pennies for their work (for context: an unsigned artist made $0.007 per Spotify stream in 2015.) Yup.
Spotify declined to comment when reached out about the Axios report.