Spotify’s co-founder Martin Lorentzon has stepped down as chairman of the music streaming firm, with chief government Daniel Ek taking his place — the newest in a collection of modifications on the firm forward of an anticipated flotation in 2017.
Mr Lorentzon will stay on the board and wrote on Twitter: “I’m wanting ahead to a different 10 years at Spotify as vice-chairman, happening walks with and speaking to [fellow co-founder Daniel Ek] day by day.”
The perennially lossmaking service, which has been striving to stabilise its monetary well being and reorganise itself, misplaced its chief income officer Jeff Levick, in addition to its European gross sales head Jonathan Forster final month. Almost each finance job itemizing on the location is at present in New York, pointing to a shift of monetary operations from Stockholm to the US.
“Within the US, this can be very widespread to merge the CEO and chairman roles, so this provides you a very good indication of the place they’re itemizing,” stated a supply near Spotify. “The restructuring factors to an Americanisation of the corporate.”
Spotify declined to remark.
The corporate, valued at $eight.5bn in a current funding spherical, made a internet lack of €173m final yr, regardless of revenues surging to €1.95bn, as royalty and distribution charges additionally jumped to €1.63bn. The streaming service now has 100m customers worldwide, of which 40m are paying subscribers.
“Spotify might be making an attempt to get all its items in place for an preliminary public providing, if meaning juggling round their company construction to be leaner and make selections extra shortly, that could possibly be the reasoning behind it,” stated analyst Mark Mulligan, founding father of Midia Analysis. “However it’s considerably uncommon in Europe to be chairman and CEO, there are often good causes to have these two roles separate when it comes to accountability and governance.”
The corporate has been unable to make a revenue for 10 years, primarily due to its costly licensing offers: music labels carve out as much as eighty two per cent income share for themselves as a part of commonplace licensing agreements with Spotify and others.
In the meantime, it faces intense competitors from tech giants together with Amazon and Apple, who’ve launched their very own paid streaming providers, because the business seems to be to adapt to streaming because the dominant type of music listening.