The music streaming service Spotify has told investors it can become profitable and fend off bigger rivals such as Apple and Amazon, as it announced its shares will begin trading on the New York stock exchange on 3 April.

Executives of the 12-year-old company said it had a user base of more than 100 million, with a higher percentage of paid subscribers than “freemium” listeners, who get music streamed free with ads, which is helping to drive more revenue to performers and copyright holders.

Spotify’s co-founder and CEO, Daniel Ek, framed the launch as an attempt to save the music business from the effects of piracy as users increasingly use curated services like Spotify as a way not just to sample music but to discover it.

Spotify said subscriber growth gave the company a clear path to profitability as revenue grew 39% to €4.09bn ($5.03bn, £3.61bn) in 2017 from €2.95bn ($3.63bn, £2.6bn) in 2016.

But net financing costs of €855m ($1.05bn, £755m) pushed up operating losses to €378m ($465m, £334m) from €349m ($429m, £308m).

Ek made a direct pitch to retail investors during a public webcast that stood in place of a traditional closed-door “road show” typically used to woo institutional investors in initial public offerings (IPOs).

The Stockholm-based company’s stock will be available to investors via an unusual direct listing without traditional underwriters.

Ek said he would not be ringing the bell or standing on the floor of the New York stock exchange giving interviews when Spotify’s shares start trading.

“It’s not about the pomp and circumstance,” he said. “I think the traditional model of taking a company public isn’t a good fit for us.”

Because the company will not issue any new shares, it did not specify a listing price. Based on private transactions, it is valued at roughly $19bn, according to Reuters calculations.

Ek conceded that Spotify could have done a better job explaining what the company was trying to do with music streaming, after the company found itself harshly criticized for returning minimal sums to performers and copyright holders.



He said it was not Spotify’s mission to disrupt the music industry or replace anyone. Ek cited statistics that showed music industry revenues had fallen 40% between 1999 and 2014 but rebounded somewhat between 2014 and 2016 as Spotify grew its user base.