(Hypebot) – Music streaming services have traditionally been huge money losers, based on recent financial filings. But Spotify may be closer to profitability than thought, based on comments from a prominent Spotify board member and investor.
Spotify is increasingly focused on profitability and could become profitable as early as next year, according to a prominent Spotify board member who was also one of the music streamer's first investors.
"Up until now, I think it's been growth, growth growth," Par-Jorgen Parson, a Spotify board member and partner at venture firm Northzone told Reuters during the tech conference Slush in Helsinki. "Maybe profitability will start to become a priority too."
When asked it profitability could come as early as next year, Parson answered, "Absolutely, yes." Northzone first invested in Spotify in 2008, and remains its second biggest shareholder after the company's founders.
Tough Label Negotiations vs Big IPO
Predictions of profitability come at a delicate time for Spotify. For months, they have been locked in tough negotiations with the major record labels, who want to extract more income from the music streamer.
But Parson's sights may be set on a broader horizon – a rumored 2017 IPO. "As an investor – and I've been in the company now for almost 10 years – we're looking forward to an IPO at some point in time," said Parson, who declined to be more specific.