Taylor thrift

25 August 2017 By Liam Proud Follow @liamwardproud

The streaming service is closer to an IPO after sealing deals with music labels like Warner. But Spotify’s ability to turn a decent profit is still in doubt since it may not have won much ground on royalties. Apple and Amazon also pose threats that could deter investors for now.

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Spotify said on Aug. 24 it had renewed its global licensing partnership with Warner Music. The agreement represents the last big royalty deal that the music-streaming service needs with major labels before pushing ahead with a U.S. stock market listing.

The Swedish company said in July it had 60 million paying subscribers and 140 million active users as of June. Apple reported 27 million music subscribers in June, according to Reuters, up from 20 million in December.

Spotify struck deals earlier in the year with Universal Music and Sony Music to pay about 52 cents of each dollar back to labels, from roughly 55 cents previously, according to the Financial Times.

Warner Music Group Chief Digital Officer Ole Obermann said in a post on social media site Instagram: “It's taken us a while to get here, but it’s been worth it, as we've arrived at a balanced set of future-focused deal terms.”

Stefan Blom, Spotify’s chief content officer, said the partnership will “help grow the new music economy where millions of artists can instantly connect with fans, and millions of fans can instantly connect with artists."

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