Posted 06/11/2015 at 9:29 AM
Posted 2 years ago
The latest news concerning Spotify may possibly have compelled the company to say, “take that Apple!”
In its latest round of venture funding, the world’s largest subscription-based streaming music service received a valuation worth approximately $8.5 billion.
The money came from Goldman Sachs Group, Discovery Capital Management and others that totaled $526 million.
The new valuation figure is double the previous price Spotify received at the end of their last round of fundraising in 2013.
It has also entered into a partnership with the telecommunications carrier TeliaSonera AB.
Having invested $115 million, the company has high hopes for what Spotify can offer its current customer base as well as those newer subscribers.
As CEO Johan Dennelind stated, “This is a field where you will see a lot of competition and where it’s very clear that Spotify has taken a lead.”
Spotify has also stated that they currently have 75 million active users of the service, with 20 million of that number being actual paying subscribers.
The company’s next moves will involve the addition of more video content as well as podcasts to bring in more revenue related to advertising, necessary ventures given Apple Music’s launch this past Monday, which has industry observers seeing a heated competition between it and other service providers like Pandora against Spotify for dominance.