|
| Search for Cases |
|
Case Details |
|
Case Code: FINC145
|
| Case Length: 14 Pages |
| Period: 2006-2018 |
| Pub Date: 2019 |
| Teaching Note: Available |
| Price:Rs.400 |
| Organization : Spotify Technology S.A. |
Industry : Music Industry
|
| Countries : USA, Sweden |
| Themes: Initial Public Offering |
|
|
|
|
The Spotify IPO |
|
|
|
|
|
|
| <<Previous Page |
|
EXCERPTS |
|
|
| |
With the idea of letting people listen to music for free, Daniel started a two-tier service model known as ‘freemium’ that was free and paid. The free-tier was supported by advertisements. Spotify generated its revenues from the ads that featured on its free service and through the subscription fees for the paid service. The ad-supported service gave limited on-demand service. It acted as a funnel to bring in subscribers. Since 2014, the ad-supported service had added 60% subscribers to the premium service... |
| |
 |
| or |
 |
| or |
PayPal (9 USD)
|
|
|
| |
| GOING IN FOR AN IPO |
| When the founders wanted to list the company, Barry McCarthy, CFO, Spotify who had been part of two IPOs earlier, started to question the kind of value that an IPO would add to the company and the investors. He was of the view that the IPO regulations that had been framed in the 1930s werenot suitable for the present day tech-savvy investors. In subsequent meetings, the founders and the CFO found several issues with the traditional IPOs... |
| |
| THE UNIQUE LISTING |
| As per tradition in NYSE, when a company was listed, its founders and leaders rang the opening bell. But Daniel and others chose to skip the event. Daniel said, “For us, going public has never been about the pomp or circumstance.Normally, companies ring bells. Normally, companies spend their day doing interviews on the trading floor touting why their stock is a good investment. Our focus isn’t on the initial splash.”..
|
| |
| LOOKING AHEAD |
| With one of the largest tech-listings, Spotify became one of the biggest tech companies in Europe. It made a tremendous impact on the tech ecosystem not only in Stockholm but all across the country. Its popularity helped it attract talent from across the world. The highly successful IPO was expected to pave the way for the listing of many more tech companies from Europe..
|
| |
| EXHIBITS |
Exhibit I: About Music Industry
Exhibit II : Three-year consolidated financial statement of Spotify Year Ended December 31
Exhibit III : Free and Premium Subscribers of Spotify
Exhibit IV :Key Performance Indicators (KPI) of Spotify
Exhibit V : The Initial Public Offer
|
|
|
|
