![]() SPAN is key because it will allow Spotify to turn its advertising business into something more akin to YouTube and less like analog radio. The most important product launched was the Spotify Audience Network (SPAN), a dynamic marketplace where advertisers can easily place audio ads across music and podcasts. Spotify made a ton of progress on its journey toward a global audio platform in 2021. ![]() We expect this positive trend to continue over the next five years. It should be noted that customer churn was stable even with the price increases, according to CFO Paul Vogel on the latest conference call (although they never give out specific numbers). ![]() This occurred because Spotify raised prices in a few key markets. Average revenue per user (ARPU) grew 3% year-over-year in Q4.Subscribers grew 16% year-over-year to 180 million.In 2021, here’s how the premium music business evolved: It has only been around a year since our initial purchases of the stock, but so far, parts 1 and 2 of our thesis are proving correct. We believed this was true when the stock was close to $300 a share, and even more so when it is below $150 a share. The market has not priced in what this will mean for the business over the next three to five years.In the near term, this will play out through podcast advertising, and over the long term, it opens up tons of optionality for new business models. ![]()
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