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Spotify's valuation increases after U.S. launch


  

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Tuesday, 09 August 2011
Since music service Spotify launched its service in the U.S.A., the value of the company has increased to over Skr7 billion according to news reports.

The Swedish daily, Dagens Nyehter, quoting the technology site ZDnet report that after the long awaited launch of Spotify in the USA earlier this summer, the company has been on the lookout for more venture capital. The hunt has not been in vain.

The latest round of funding generated $78 million, equivalent to Skr528 million, from previous investors and Skr135 million from new investors, which increases the valuation of the company to over Skr 7billion.

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However, to launch on the U.S. market has been far from free. The adventure so far is reported to have cost close to $100 million.
The U.S. consumers can only enjoy Spotify by invitation, which means that it’ll take time before the company begin to make strong revenues in the U.S..

Music service Spotify, which was launched in the U.S. in mid-July, now has 1.4 million users in the United States. Of these, 175,000  are pay users, reports the site Music Week on Tuesday.
 
According to the site Spotify can get 20 million users in its first year in the U.S. market, of which three million could be paying.
By Scancomark.se Team


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