Source: Spotify
Spotify might be a bad investment stock despite reaching 236 million premium subscribers.
Here are the key takeaways:
1/ Record growth in users and subscribers. Despite a year marked by operational challenges, Spotify achieved record growth, with a significant increase in both Premium subscribers and monthly active users. The company now has 236 million Premium subscribers, marking a 4 percent increase over the last quarter, and its total monthly active users have risen by 5 percent to 602 million.
2/ The business model. Despite the user and subscriber growth, Spotify reported a quarterly loss of €70 million, an improvement over the €270 million loss from the same quarter in the previous year. The net loss for the entire year stood at €532 million. The labels own the industry so from a strategy point of view Spotify needs a new source of growth.
3/ Podcasting. Spotify renews its deal with Joe Rogan to allow the distribution of his podcast on other platforms and incorporate audiobook content for Premium subscribers. These moves suggest Spotify is diversifying its content to enhance user engagement and value.
Source: The Verge
