Spotify announced April 3rd as the day its stock would begin public trading during a live and webcast presentation to investors Thursday. Promising more transparency and opportunities for artists. CEO and founder Daniel Ek shared his vision of Spotify's future and why investors would want to bet on an unprofitable company.
Explosive growth and its position as the global leader in music streaming were at the center of Daniel Eks pitch during Thursday's first Spotify Investor Day.
Supporting that growth are three pillars, according to EK:
- Freemium - this ad-supported tier, much maligned by rights holders for paying low royalties, hooks users who eventually are willing to pay for the service
- Ubiquity - rather that favor specific devices, kike Apple and Amazon often do, Spotify works to be available everywhere
- Personalization - with 35 million tracks individualization is essential, says EK, citing the company's use of both data and curators to deliver the right music and drive discovery
Spotify is forgoing the traditional IPO, but will offer stock to the public starting April 3rd. "“It’s not about the pomp and circumstance,” according to EK “I think the traditional model of taking a company public isn’t a good fit for us.” The company will issue financial guidance on March 26 ahead of the listing.
Ek also promised a continuing expansion of its Spotify For Artists platform and new efforts to help artists find an audience.