Stockholm's Spotify says sales may top $889 mln in 2012
Friday, April 13, 2012
Posted by: Reuters
Digital music streaming
service Spotify may see revenues top 6 billion Swedish crowns
($889 million) this year as it pushes ahead with its rapid
expansion on both sides of the Atlantic, founder Daniel Ek said
in a newspaper interview on Friday.
Ek told business daily Dagens Industri that figures put
forward by the paper showing the unlisted Swedish start-up's
sales grew 160 percent to 1.69 billion crowns last year while it
accumulated a net loss of 402 million sounded "reasonable".
"It is not unlikely that we already this year will have a
turnover of more than 6 billion crowns," he added.Spotify has more than 10 million active users and over 3
million paying subscribers for its on-demand service, which
offers unlimited streaming for free to those prepared to
tolerate ads, or a premium rate of $10 a month.
The European start-up, which is backed by digital
entrepreneur and Facebook founding president Sean Parker, has
grown fast in recent months since launching in the United States
and sealing a partnership with Facebook.
Ek, who together with co-founder Martin Lorentzon and
company staff owns a majority of Spotify shares, told the paper
he was not worried about the company's mounting losses.
"Our focus is all on growth. That is priority one, two,
three, four and five. But of course we expect to make a profit
in the long run," he was quoted as saying.
Spotify has raised capital from outside investors several
times since it set up shop in 2006 and there have been recent
media reports it was looking to secure another capital boost of
around $200 million, valuing Spotify at about $4 billion.
"At those levels we would definitely be interesting in
talking," he was quoted as saying.
Read the full article at Reuters.