Spotify Valuation $16 Billion – The $16 Billion valuation is $3 Billion higher than June 2017, illustrating the explosive growth of music tech… And the rapid increase in valuations that we predict will continue for the foreseeable future! We’re proud to say Spotify was the first partner to recognize the TuneGO vision. Cheers… Here’s to $16 Billion and counting!
How Spotify Turned Free Music Into A 10 Billion Valuation Act
The push into video adds a new layer of value to the service's 60+ million users, who Spotify hopes will turn to it as a one-stop shop for on-demand entertainment both on desktop and mobile devices. It also helps Spotify to differentiate itself as the streaming field becomes more crowded. That’s right: some 13 years and 96 million paid subscribers later, Spotify is finally making money. Unless you count that one time a complicated tax situation technically threw it into the black. Spotify is a digital music service that gives you access to millions of songs. Spotify is all the music you’ll ever need. Listening is everything - Spotify.
Nearly $2.8 Billion Invested Into Music Last Week – Investors now recognize music-tech is the hottest market in the world! We started TuneGO when the music industry was in it’s 18th year of decline. Most people said “why are you starting a technology company for the music industry?” Now they’re saying “Wow TuneGO is the future of the world’s hottest industry.” … And to think this is just the beginning!
Carlin America Sold for $250 Million to Round Hill Music – Historic independent publisher Carlin America to be sold to Round Hill Music for $250 Million. This deal illustrates the value of independent music catalogues. The TuneGO acquisition strategy is to acquire an invaluable music catalogue that commands a premium valuation… And we’re on our way!
Production Music Is $1 Billion Global Industry – When it comes to the music industry, there are many ways to generate revenue. One way is production music, which is a $1 Billion global music industry. Production music is used for visual and marketing media. This shows one of many ways music generates revenue, illustrating the tremendous value of music content!
BROKEN RECORD: Streaming Continues to Power Music Industry’s Growth – Yeah, yeah streaming if the future of music we know this! But we don’t always realize streaming will take the music industry to unprecedented heights. In the first half of 2017, retail revenues grew 17% year-over-year to $4 Billion. Streaming growth validates the TuneGO vision of becoming the world’s leading supplier of talent, content and BIG DATA to the entertainment industry.
ENCORE: SiriusXM Completes $480 Million Pandora Investment – In this week’s follow up ENCORE segment, SiriusXM completes its $480 Million investment into Pandora. Interesting article, sign-of-the-times, check it out!
Today’s Awesome Quote! “And those who were seen dancing were thought to be insane by those who could not hear the music.” – Friedrich Nietzsche
For daily music news, follow me on Twitter or LinkedIn.
John Kohl
CEO
TuneGO
www.tunego.com
Extending the touchpoints and avenues by which users can stream music
Key facts
- In the entertainment space, Spotify¹ has become a pioneering example of an atomized service, achieving ubiquity by enabling access through multiple third-party touch-points (e.g. Sonos, Ford, iOS, Android and Samsung Smart TVs).
- The company has released Software Development Kits (SDKs) for iOS and Android developers and more recently launched the Spotify + Uber integration, allowing users to remotely control music in enabled Uber rides.
Uniqueness
How Spotify Turned Free Music Into A 10 Billion Valuation Money
- Spotify is extending the touchpoints and avenues by which users can stream music through their service by collaborating across sound system, home and auto entertainment providers.
- Spotify Connect sets up a connection between Hi-Fi and Wi-Fi – allowing streaming directly via Spotify and not via a user’s phone (which instead can serve as a remote and remain free to use for other activities).
Value
- Spotify is valued at over $10 billion.
- Services 50 million users, with over 12.5 million paying subscribers.
- Approximately 30% of revenue is retained by the company, while approximately 70% is split among rights holders.
Approach
- Spotify has created connections with 30+ partners.
- Spotify utilizes a Freemium business model, with potential to drive conversions from new partnerships and platforms.
- In order to benefit from the interoperability that Spotify Connect offers, users must subscribe to Spotify Premium ($9.99/mo).
Spotify Connect is one of more than 100 case studies identified as part of the World Economic Forum’s Digital Transformation of Industries initiative. An overview of the DTI program can be found here.
1. Sources: ”The Era of Living Services”, Accenture, “How Spotify Turned Free Music into a $10+ Billion Valuation”; Growth Hackers,; Pocket-link; Spotify Connect landing page; WEF/Accenture Analysis