Spotify is now worth $16bn in private trades

Spotify is now worth $16bn in private trades

is now is being valued at $16 billion, according to a recent Reuters report. This figure is $3 billion higher than similar trades until June 2017. GP Bullhound, a technology investment and advisory firm, led an investor survey that estimated Spotify to be worth $50 billion in only a few years.

The music industry’s leading music streaming service is currently in high demand for shares. Furthermore, it has extraordinarily strong subscription numbers, leading some to estimate that the company could be worth $20 billion when it goes public. It currently has 140 million active users. They had five million paying customers back in 2012, but have since transitioned 60 million  them to pay for the service — making nearly half its users paying subscribers. 

These positive reports could be the result Spotify having a leg up on its competitors when it comes to rights deals with major record labels. 

With all this positivity, though, Spotify’s long-term success and stability is difficult to predict because their subscription rates aren’t fixed; rather, they differ depending on the location. Many their premium users have the premium account packaged as bonus, such as with their mobile data package, or at a steeply discounted rate.

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Spotify is now worth $16bn in private trades