(Reuters) - Spotify Technology SA (SPOT.N) said on Friday it uncovered 2 million users of its free service who had blocked advertising without paying, highlighting a potential revenue risk for the soon-to-be public company.
In an amended version of the share prospectus filed last month, the Swedish company said it continues to be impacted by third-party attempts to gain unauthorized access to its premium service.
The music-streaming company previously included the 2 million users in calculations for some of its key performance indicators, including MAUs, ad-supported users, content hours, and content hours per MAU. More here
FILE PHOTO: Headphones are seen in front of a logo of online music streaming service Spotify, February 18, 2014 REUTERS/Christian Hartmann/File Photo
Spotify said it currently does not have the data to adjust previously provided key performance indicators, and as a result certain metrics may be ‘overstated’ in its prospectus.
The company had 157 million active users as of Dec. 31, of which about 71 million were paid subscribers who access ad-free versions of the service, according to its website.
Spotify had filed this week for a direct listing of its shares, instead of a traditional IPO.
The direct listing will let investors and employees sell shares without the company raising new capital or hiring a Wall Street bank or broker to underwrite the offering.
patn8 on March 23rd, 2018 at 15:17 UTC »
Shuffle Play is a BIG BIG disadvantage, most people cite this as the primary reason for circumventing Spotify's original functionalities.
Kevopomopolis on March 23rd, 2018 at 14:59 UTC »
Mildly related, but I love how Spotify has video ads, as if people are sitting there listening to spotify, staring at the app.
AfternoonPot on March 23rd, 2018 at 13:43 UTC »
Please don't raise the subscription price.
Edit: Wow 2.5k upvotes. Y'all are crazy!