Leading music streaming service Spotify has secured in a fund of $350 million in a funding round led by Goldman Sachs, as reported by CNBC. The report further states, that company’s valuation, pre-funding, is already soaring as high as 8 Billion.
Spotify is a commercial music streaming service that provides digital rights management-restricted content from record labels including Sony, EMI, Warner Music Group, and Universal. Music can be browsed or searched by artist, album, genre, playlist, or record label and can be streamed online.
On 17 June 2011, it was reported that Spotify had secured another US$100 million of funding and planned to use this to support its U.S. launch. The new round of funding valued the company at US$1 billion. On 14 July 2011, Spotify launched its U.S. service, after delays and years of negotiation with the four major record companies.
On 15 April 2011, Spotify announced via a blog post that they would drastically cut the amount of music that free members could access, effective 1 May 2011. The post stated that all Spotify Open and Spotify Free members would be transferred to a new product which limited audio streaming to 10 hours per month. In addition, individual tracks were limited to five plays. Spotify Unlimited and Spotify Premium members were not affected by this change.
In 2013, Spotify raised $250 million that drove the company to a valuation of $4 billion. More recently, Spotify raised an hefty $537.8 million from investors including Kleiner Perkins, Fidelity Ventures, and Technology Crossover Ventures. Not including this new round of funding, CNBC report says that Spotify already has a valuation of $8.4 billion.
The news comes just a day after the popular music streaming service Grooveshark announced its closure due to its legal battles with music record labels.
As of January 2015, Spotify had 60 million active users, with 15 million of them paying. Spotify charges $9.99 per months for its premium services, and is currently unavailable in India.
FEATURED IMAGE :Johan Larsson / CC 2.0 / FLICKR