Netflix’s Creative Chief Ted Sarandos to Join Spotify Boardby
Spotify CFO Barry McCarthy helped take Netflix public
Sweden-based music streamer aims to go public next year
Netflix Inc. Chief Content Officer Ted Sarandos will sit on the board of Spotify Ltd., owner of the world’s largest paid music-streaming service.
Sarandos, who oversees the production and acquisition of all the programming on Netflix’s online TV service, is joining Spotify as the company prepares to go public next year. Barry McCarthy, Netflix’s former chief financial officer, is now Spotify’s CFO.
Spotify is attempting to restructure the music business around on-demand streaming, much like Netflix introduced the world to on-demand video. The concept has caught on with consumers. Chief Executive Officer Daniel Ek said Spotify has 39 million paying subscribers -- more than double that of rival Apple Music.
Yet Spotify is still searching for a business model that can ensure profitability. The company returned 84 percent of sales to rights holders last year, dimming significant revenue growth.
For its part, Spotify has tried to reduce its outlays to record labels in recent negotiations, and wants to convince more people to shift from its free, ad-supported product to the paid service. The company also has begun funding and producing original video series to capture more customers’ time and compete with Apple Music, as well as Alphabet Inc.’s YouTube.
Recode reported earlier Tuesday that Sarandos will be joining Spotify’s board.