(Bloomberg) -- A music streamer partly owned by Spotify Technology SA is firming up plans for a stock market listing by targeting New York over its home market of Sweden.
Stockholm-based Soundtrack Your Brand Sweden AB, which saw sales from its business-to-business subscription service jump 40% last year, is speaking to bankers with the aim of going public in 2023, according to Chief Executive Officer and founder Ola Sars.
“It’s easy to explain the business model to the market. We are the business version of Spotify,” Sars said in an interview.
The streaming service, originally known as Spotify For Business, began building its own music library in 2016 and has since secured 16,000 deals with clients including McDonald’s Corp, Lululemon Athletica Inc. and J. Crew Group Inc. Sars says the company has begun rolling out its first on-demand streaming service in 75 markets.
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“It goes without saying that the B2B market will also be part of the streaming economy,” Sars said.
A key appeal for Soundtrack’s service is enabling music creators and rights holders to tackle the problem of lost revenues, according to the CEO. Of the 120 million business venues streaming music worldwide, more than 80% is estimated to illicitly use consumer accounts, data from MRC Nielsen show. Soundtrack’s standard service costs $50 per month, which is about ten times higher than most consumer subscriptions.
Correcting this misuse “means the B2B market alone could add more than $50 billion a year on top of the music streaming market,” Sars said.
The company -- which also counts Fuel Venture Capital, Balderton Capital, Telia Co. AB and the Persson family’s investment vehicle as investors -- expects to finalize a new financing round in the coming quarters ahead of an IPO in the U.S.
“I don’t think the Swedish market is sophisticated enough for B2B SaaS companies,” Sars said.
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