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Earlier in December, Spotify expanded its beta rollout of official music videos to Premium users in the US and Canada, after testing in nearly 100 markets and featuring artists such as Ariana Grande and Olivia Dean to deepen engagement and compete more directly with YouTube.
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Almost simultaneously, the company confronted what may be the largest music piracy incident to date, an illicit archive scraped from its catalog, spotlighting the financial and reputational stakes of content security just as it leans harder into richer, video-centric experiences.
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We’ll now examine how Spotify’s US and Canada music video expansion reshapes its investment narrative around engagement, monetization, and platform risk.
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To own Spotify today, you need to believe it can turn its scale in music and expanding formats like video into durable cash generation, despite heavy content costs and fierce competition from Apple, Amazon, and YouTube. The US and Canada music video rollout, paired with the large piracy incident, does not appear to change the near term focus on engagement driven growth as the key catalyst, but it does sharpen content security and platform integrity as a near term operational risk.
The music video expansion for US and Canada Premium subscribers is the most relevant development here, because it directly targets deeper engagement and higher monetization per user across a richer media experience. It also reinforces one of the central catalysts for the stock: that ongoing product innovation across music, podcasts, video, and audiobooks can lift revenue per user and improve operating leverage as Spotify monetizes a broader share of listener attention across its ecosystem.
Yet while engagement and revenue opportunities are growing, the emerging content security and piracy risk is something investors should be aware of as they consider…
Read the full narrative on Spotify Technology (it’s free!)
Spotify Technology’s narrative projects €23.8 billion revenue and €3.4 billion earnings by 2028. This requires 12.8% yearly revenue growth and a roughly €2.6 billion earnings increase from €806.0 million today.
Uncover how Spotify Technology’s forecasts yield a $748.60 fair value, a 28% upside to its current price.
