You’d think as one of the most popular streaming services on the planet that’s available in 60 markets and touts more than 40 million users, Spotify would be raking profits hand over fist, but that couldn’t be further from the truth. The company has reported a loss every single quarter ever since it was launched but according to a new report, Spotify might finally be able to turn an actual profit. This bodes well for Spotify as it’s believed to be interested in launching an IPO.
Spotify does make a lot of money but almost all of it goes to paying royalties to labels and artists that make their music available on its streaming service. It can’t not pay them because their music is why it’s in business in the first place.
Par-Jorgen Parson, a member of the venture capital firm Northzone and an initial investor in Spotify, told Reuters in an interview that Spotify has been focusing its energies on growing and expanding rapidly. It has certainly seen considerable progress on that front.
When asked whether the company is going to be able to turn a profit in 2017 at least, “Absolutely, yes” was the reply. The company hasn’t officially given any such guidance as yet and it doesn’t really need to since it’s not publicly traded but it will be a big deal for Spotify as it looks towards a future in which it’s potentially a publicly traded company.
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