Spotify recently raised $1bn from investors at an interest rate of 5% a year, plus a discount of 20% on shares once a planned initial public offering (IPO) takes place.
Under the agreement the interest rate to investors goes up every 6 months until the IPO happens, forcing the company to pay ever larger repayments.
Now, according to a report in the Wall Street Journal, Spotify is considering not holding a public sale of shares.
The paper reports it is looking at simply listing its existing shares on an exchange in what is known as a direct listing. It wouldn't raise any money, much to the disappointment of Wall Street.
And while this drags out, artists, songwriters and labels, are clamouring for more money in exchange for song plays.
A court hearing is currently underway in the United States to decide how much money streaming firms such as Spotify should pay, every time a song is played.
Apple, Spotify, Google, Pandora and Amazon are all making their cases to federal judges who will also hear the case from song writing trade groups.
The decision expected at some point in 2017 will determine pay rates until 2022 and Apple has suggested a flat rate of 9.1 cents per 100 streams.
This offer is viewed as a tactic to hurt Spotify, which currently pays a lot less per song.
Needham analyst Laura A. Martin published a note in October last year, calculating that Spotify's average revenue per user is about $8.80 per month based on 2015 figures.
She said Spotify is "strategically critical" to the music industry, is growing rapidly and helps consumers access new musicians, which is a major issue for labels.
But on arguments about royalties and the future of music, Needham said onlookers have missed the industry's key shift.
"The music business is no longer primarily about selling music.
"It's about attracting, building and retaining a global audience of dedicated fans that will buy a broad range of products, including (but not limited to) music," she said.