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Spotify is beating Apple. Now what?

Spotify managed to survive a formidable streaming opponent: Apple. But with billions of dollars in losses adding up, the question is: at what cost?

Posted: Apr 4, 2018 9:42 PM
Updated: Apr 4, 2018 9:42 PM

Spotify's arrival on Wall Street is music to the ears of some of Asia's biggest tech companies.

Chinese social media and entertainment firm Tencent and Japanese electronics icon Sony are two of the music streaming platform's biggest backers.

Tencent holds a 7.5% stake in Spotify, according to a regulatory filing. After Spotify shares started trading Tuesday, that stake is now valued at about $2 billion.

Spotify opened at $165.90 a share on the New York Stock Exchange. The stock later fell, closing below $150 a share and giving the company a market value of nearly $30 billion.

Spotify and Tencent's music subsidiary announced a share swap in December, taking minority stakes in each other ahead of expected stock market listings this year.

Related: Spotify valued at nearly $30 billion in unusual Wall Street debut

Tencent Music dominates music streaming in China through its QQ Music, KuGou and Kuwo platforms.

It also has a stranglehold on the streaming of mainstream Western music in China through exclusive deals with Sony Music, Universal Music Group and Warner Music Group. Under the arrangement, Tencent gets to decide which songs rivals can stream.

Tencent Music is reportedly preparing for an initial public offering later this year.

Spotify owns about 9% of Tencent Music, a stake valued at €910 million ($1.1 billion), according to a regulatory filing with the US Securities and Exchange Commission. That puts Tencent Music's overall valuation at around €10.1 billion ($12.5 billion).

Related: China's big streaming shift: Paying instead of pirating

Like some other major recording labels, Sony Music owns a big chunk of Spotify. Its 5.7% stake is now worth around $1.5 billion.

The streaming music industry has given a boost to Sony's music business, whose artists include Beyoncé, DJ Khaled and Justin Timberlake.

Sony Music has reported double-digit revenue growth for the past three quarters, citing an "increase in recorded music sales due to an increase in digital streaming revenues."

Spotify's other top shareholders are co-founders Daniel Ek and Martin Lorentzon, hedge fund Tiger Global and venture capital firm TCV.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 88721

Reported Deaths: 2015
CountyConfirmedDeaths
Hennepin25628921
Ramsey10410318
Dakota7048125
Anoka5664132
Stearns371523
Washington352655
Scott238633
Olmsted226327
Nobles192616
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Wright15087
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Rice12978
Mower12744
Clay123240
Sherburne107814
Kandiyohi9182
Winona84318
Lyon6384
Steele5162
Freeborn5113
Benton5003
Watonwan4984
Nicollet49616
Todd4732
Le Sueur4434
McLeod4402
Chisago4331
Waseca4258
Crow Wing41918
Otter Tail3794
Beltrami3714
Goodhue3249
Martin3049
Itasca27113
Polk2704
Isanti2440
Becker2422
Pine2390
Douglas2361
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Morrison1951
Dodge1900
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Murray1522
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Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 79506

Reported Deaths: 1256
CountyConfirmedDeaths
Polk15227256
Johnson498527
Woodbury494461
Black Hawk433686
Linn3762106
Story327917
Scott276527
Dubuque276040
Dallas267538
Pottawattamie197637
Buena Vista194112
Marshall175934
Sioux13203
Wapello125757
Webster118914
Clinton106218
Muscatine106052
Plymouth103420
Crawford9944
Cerro Gordo99321
Warren9276
Jasper75632
Des Moines7377
Marion7074
Tama68731
Carroll6305
Henry6034
Lee5947
Wright5621
Dickinson4836
Bremer4637
Boone4627
Washington43011
Louisa42515
Mahaska33619
Franklin33517
Delaware3293
Hamilton3143
Floyd2963
Jackson2963
Winneshiek2935
Clay2883
Benton2811
Hardin2761
Winnebago26611
Butler2582
Clarke2553
Emmet25210
Jones2433
Poweshiek2438
Allamakee2425
Shelby2421
Lyon2413
Buchanan2351
Clayton2303
Cedar2191
Guthrie2175
Kossuth2170
Sac2090
Chickasaw2070
Grundy2012
Madison2012
Fayette1871
Cherokee1852
Howard1825
Iowa1821
Mitchell1810
Harrison1772
Hancock1722
Humboldt1713
Calhoun1692
Mills1651
Palo Alto1590
Pocahontas1512
Monroe14610
Page1410
Lucas1386
Jefferson1331
Monona1321
Cass1292
Osceola1250
Appanoose1203
Union1203
Taylor1191
Davis1134
Van Buren1091
Worth1020
Ida960
Keokuk901
Montgomery865
Greene840
Fremont820
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