(Reuters) – Music streaming service Spotify Technology SA [SPOT.N] said on Friday about 2 million of its non-paying users were suppressing advertisements, highlighting a potential revenue risk for the soon-to-be public company.
Spotify had 157 million active users as of Dec. 31, of which about 71 million were paid subscribers who access ad-free versions of the service.
In a regulatory filing, Spotify said here it previously included the 2 million users in calculations for some of its key performance indicators, including MAUs, ad-supported users, content hours, and content hours per MAU.
The streaming music leader had filed this week for a direct listing of its shares worth up to $445 million, instead of a traditional IPO.
The direct listing will let investors and employees sell shares without the company raising new capital or hiring a Wall Street bank or broker to underwrite the offering.
Reporting by Arjun Panchadar in Bengaluru; Editing by Saumyadeb Chakrabarty