As we all know, the last few months have meant no live music due to the COVID-19 pandemic. Because of this, music streaming services have become our “virtual best friends” by giving us an outlet to listen to our favorite artists in the comfort of our own home. Spotify, a popular streaming service, has seen a major increase in their stock over the last few months. At the start of the pandemic, Spotify’s stock was at $109.18 per share. Within the last 3 months, that figure has doubled.
With its user friendly interface, Spotify allows many options to the end user. You can chose to have the free version, or pay $9.99/month (Spotify Premium). Through the app or website, you are able to listen to songs, remixes, and full albums. One of my personal favorite features of Spotify is “New Music Friday”. Each Friday, Spotify comes out with new music – across all genres – so you are able to impress your friends with some cool new tunes, weekly.
Spotify Adds Podcasts
Possibly one of the best new additions, and reason for the increase in revenue, is the addition of its podcasts. Spotify has signed podcast agreements with many major celebrities, including, Kim Kardashian West. Her podcast, which will be exclusive to Spotify, will revolve around Criminal Justice, a topic she’s become very fond of in recent years. (She’s getting her law degree, if you haven’t heard!) Analysts are also predicting that these podcasts, will help to negotiate contracts with the Big Three Record Labels. (Sony BMG, Universal Music Group, and Warner Music Group)
Due to Spotify’s increased popularity, Jim Cramer, Money Mad host and financial analyst, is recommending that investors buy Spotify (SPOT) shares. Many firms are expecting the stock to rise to above $275 a share.
In an effort to aid revenue further, Spotify has also launched a paid promotion tool for artists. Earlier this year, Spotify reported a 31% year over year increase with monthly users. With all the new features, that number is sure to increase next year.
With Spotify stock on the rise, now is the time to grab some shares with all that money saved on festival tickets ;).