Spotify has announced plans to move its U.S headquarters by the beginning of next year. The company will move its New York office and its employees from the Midtown South area of Manhattan to the World Trade Center in early 2018. New York governor Andrew Cuomo said at an event in New York City, “We are proud to welcome Spotify to 4 World Trade Center and to have the future of music be a part of the bright future of our dynamic tech community.”
The Governor said Spotify will receive up to $11 million in rent reduction from Empire State Development as part of the lease. The rent reduction incentive program was created to lure businesses back to the World Trade Center site in Lower Manhattan. The rent credits are available for approximately 15 years of Spotify’s lease.
CEO Daniel Ek started looking for New York office space in September after the company’s staff outgrew its current office space. The move will make the new building, owned by developer Larry Silverstein, the first office tower to be fully leased on the 16-acre World Trade Center site. The company’s current Manhattan office will eventually close as part of the deal.
Spotify also said it would also more than double its workforce in the country by next year. The move to the new office space will result in the addition of more than 1,000 new jobs while retaining 832. The new jobs created will include engineers, marketing professionals, analytics professionals, and staff to handle a host of other critical business functions. Spotify currently has about 2,000 employees worldwide.
Governor Cuomo said in his statement that “Spotify’s expansion is the latest example of this community’s incredible potential for growth.” The Governor celebrated the announcement by releasing a New York-centric Spotify play list he created. The 36-track Spotify playlist included four songs by Billy Joel, two Bruce Springsteen songs, tracks by Queens natives Simon and Garfunkel, and “Empire State of Mind” by Jay Z and Alicia Keys.
Spotify is reportedly considering a potential U.S. stock market listing. The Swedish music streaming service, founded in 2006, is one of Europe’s most highly valued venture-backed startups. Based on a funding round in 2015, Spotify has a value of over $8 billion. That would make Spotify Europe’s biggest tech listing since the listing of Rocket Internet of Germany in 2014.
Spotify has numerous competitors in the music streaming industry, including Alphabet’s Google Music, YouTube, Apple Music, Pandora Media Inc. and Tidal. Spotify currently boasts the industry’s biggest paid subscriber base at 40 million paid users.
Still, the majority of Spotify’s users listen for free with commercial breaks. The company has yet to show a profit. The company reported an operating loss of 184.5 million euros ($195.5 million) in 2015, up from 165.1 million in 2014.