I believe Spotify will eventually become the world’s largest music label. Eventually, Spotify will have so much leverage that the best rising music artists will sign directly with Spotify.
#Apple logo comes on but wont turn on ipos 5 download#
Every download feeds into Spotify’s growing “targeted advertising” business.Īnd its domination comes with another advantage: leverage over music labels. So, people will typically download several new podcasts a week to keep up with their favorite programs. You see, people still listen to old songs from 40 years ago. It’s going to make Spotify an even stronger business than it is today. Spotify Cornering the Podcast Industry Should Be THE Biggest Story in the Business World In short, the world’s biggest podcasters, influencers, and brands are partnering exclusively with Spotify. The next day, Spotify announced it had inked an exclusive partnership with DC and Warner Bros. A couple of weeks ago, Spotify signed an exclusive deal with Kim Kardashian. Spotify followed that up two months later by acquiring The Joe Rogan Experience-the world’s most popular podcast. In February, it acquired the wildly popular Bill Simmons Podcast. They were wrong. Spotify’s big bet on podcasts is really paying off. They said Spotify was spending too much money. Last year, Spotify spent about $400 million on three podcast-related acquisitions: Parcast, Gimlet, and Anchor. Over the past decade, podcast usage has tripled. Much like Netflix did in streaming, Spotify has established itself as the world’s #1 destination for podcasts. Podcasts are one of the fastest growing industries on the planet. Spotify Has Made an Aggressive Push Into Podcasts And it isn’t just dominating the music market. We pounded the table on Spotify because it’s rapidly becoming something of a monopoly in the “audio industry.” It’s doing what Facebook did with social media, what AmazonĪMZN did with online shopping, and what Google did with online advertising. It’s also “smart.” The more you use Spotify, the better its artificial intelligence gets at recommending songs and artists you’ll like.īut we didn’t recommend Spotify for any of these reasons. Spotify’s music streaming platform is second to none.
Most people think Spotify is just a music streaming company. We called it our “#1 Failed IPO,” because Spotify was arguably the most misunderstood company on the planet. So, our team recommended Spotify last November. When “the crowd” throws in the towel on a stock, I often recommend swooping in to pick up shares on the cheap. Many investors gave up on the stock… And That Got Our Team Interested in Spotify Late Last YearĪs you may know, buying hated stocks is one of the best moneymaking strategies. And it spent the next two years treading water. Without the support of a major bank, Spotify fell 10% on its first day of trading. It simply offered its shares directly to the public without any help from Wall Street. In other words, it didn’t hire Goldman Sachs (GS), JPMorgan (JPM), or any other bank to underwrite its IPO. It didn’t have a traditional initial public offering (IPO). But sheer size wasn’t the only thing holding back Spotify. It plummeted 56% in six months after its IPO. The same thing happened with Snap (SNAP).
It fell 53% during its first 3 months as a publicly traded company. When a company gets this big while it’s still private, it can lead to disaster on its first day of trading. It was valued at nearly $30 billion before its shares even started trading.
Spotify Was a GIANT Company When It Went Public