Is Spotify really worth $20bn?

Music service will soon have its IPO and investors think it can be as big as Netflix. Are they right?

When Spotify lists on the New York Stock Exchange in the coming weeks the loss-making music streaming service is likely to be valued at more than $20bn (15bn): such is the faith of investors in its charismatic Swedish founder, Daniel Ek.

Ek, they believe, can build Europe's answer to Netflix - a global cultural behemoth that can take on industry incumbents and the big four technology companies at the same time, and come out on top. If Netflix can overturn Hollywood, then Spotify can transform the music industry. At least that is the hope among US fund managers.