And the company's deal-making grabbed headlines once again when Spotify signed the The Joe Rogan Experience to a multiyear deal reportedly worth over $100 million.BRAZIL - 4: In this photo illustration the Spotify logo is seen displayed on a smartphone. Later, Spotify acquired Bill Simmons' The Ringer, a podcast and media business, for up to 180 million euros ($211 million). For example, Spotify spent 357 million euros ($419 million) to acquire podcasting businesses Gimlet, Anchor, and Parcast last year. Over the last few years, it has invested hundreds of millions in podcast platforms and exclusive podcast content. Spotify has a clear path to growth as it expands globally, but it's not just relying on music. The fact Spotify leads the market across these many ecosystems highlights how strong its product must be to overcome that inherent disadvantage. Similarily, Amazon, Alphabet, and even Facebook have smart speakers in millions of homes. In contrast, Apple Music has a direct line to users of the company's 1.4 billion devices around the world.
It relies on platforms from some of its biggest competitors like Apple and Amazon to reach its user base. Spotify's industry lead is especially impressive, because it has an inherent disadvantage in not owning its distribution. It knows the global audio streaming market is huge and is its to lose. It was easy as the industry leader to justify spending 615 million euros ($722 million) on R&D last year. Given its singular focus, Spotify continuously invests in improving the user experience. For example, Alphabet's YouTube has over two billion logged-in monthly users, and Facebook has over three billion monthly users across its platforms.īut what's not so easily replicated is focus: None of the big tech companies Spotify competes with rely on music streaming for their survival. In addition, there is precedent for global digital platforms to eventually have user bases numbering in the billions. There are over three billion payment-enabled smartphones in the territories Spotify operates in or plans to enter, and smartphone adoption increases over time. Those figures grew 29% and 27% year over year, respectively, during a period greatly impacted by the COVID-19 pandemic.Īnd the company's total addressable market is vast. Spotify had 299 million total monthly active users (MAUs), including 138 million Premium subscribers, at the end of June. But the company has even larger ambitions than just music alone.
The company has already established itself as the global paid music-streaming leader, which suggests there is a lot of growth ahead of it, given music streaming adoption is still in its infancy. It's not hard to conclude that the stock of Spotify Technology ( SPOT -13.01%) is absolutely a buy.
0 kommentar(er)
