Spotify’s new video plans could boost its path to $50B market cap
Spotify’s value has been growing rapidly in the financial markets this year.
It’s partly because of its continued market leader spot in the streaming boom, and partly because it keeps coming up with new offerings to lure new subscribers and wow investors.
The latest effort is the likelihood it’s reviving the integration of music videos on its platform.
Code super-sleuth Jane Manchun Wong tweeted she has discovered a new video tab on the platform’s Now Playing screen, alongside its album art and canvas options.
Spotify has responded that it is “still exploring” the video option. However, it would certainly boost its glitter in the financial markets
On June 23, Spotify hit an all-time market cap high of $44.96 billion thanks to its share price reaching $241.76, double what it was in March.
According to Music Business Worldwide, that makes it $13.5 billion more valuable than Universal Music Group owner Vivendi, three times as much as Warner Music and four times Live Nation.
Market analysts are expecting it to go over US$50 billion before too long.
The Swede has made itself attractive to investors lately, with moves like the exclusive $100 million licensing deal with the Joe Rogan Experience podcast and an in-app interactive ad format in beta for podcast users to learn more about show sponsors.
Video integration was first introduced by Spotify in 2015, but it was dropped two years later after spending $50 million on 12 shows that failed to resonate with users.
But now taking on video market leaders as Tik Tok and YouTube makes sense.
About 12.7 million Australians – or 61% of the population – use streaming music services, according to new Roy Morgan Research which collated data from a four-week window.
Three years ago, the figure was nine million with most of the gain made since early 2019.
Spotify is the clear market leader down under with eight million local users on the platform. It has more than doubled its user-base since 2017, up by 4.4 million (+122%).