Apr 10, 2024
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Spotify Stock Soars As Company Announces Pricing Changes | Nemo

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Reports say Spotify plans to increase prices by US$1-2 across five markets (including Pakistan, Australia and the UK) by the end of April, with plans to implement the price hike in the US too later this year. Spotify will also introduce new subscription tiers, including a new basic tier which includes music and podcasts but not audiobooks, indicating that audiobooks may be a new money-making focus for the company. 

Analysts and investors are excited by this news, as this shows the company is taking steps to prioritise profitability - it has not reported an annual net profit any of the years it has been trading as a public company. 

Spotify has also recently made efforts to reduce costs to help the company reach its financial goals, reducing its staff headcount by 17% last December. In 2023, the number of paid subscribers increased by 31 million. 

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SPOT’s value is up 116.2% over the last year and the company is reported to be in ‘Above Average’ financial health. It’s recommended by analysts as a ‘Buy’. 

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Spotify is one of the most well-known streaming platforms. This Swedish company launched in 2008 and went public on the stock market in 2018. One of its most popular features is the viral marketing campaign Spotify Wrapped, introduced in 2015. Every Spotify user receives an annual round up showing the artists, songs and genres they listen to the most, in a highly shareable piece of content that has historically led to improved app ratings each year. 

In 2021, audiobooks became available on the platform, which some think may become an increasingly significant part of the company’s business model. Other innovations include the use of AI, with an AI DJ (whose voice is modelled on Spotify Head of Cultural Partnerships Xavier “X” Jernigan) who delivers personalised playlists, introducing each song with spoken commentary. 

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Han Tan

Han Tan is a seasoned financial journalist and news presenter renowned for his expertise in global markets. With a career highlighted by interviews with prominent figures and recognition from major media outlets like CNN and Reuters, he delivers insightful analysis on market news and macroeconomic trends to clients and international audiences. Han's sharp commentary on currencies, stocks, and commodities is familiar to viewers of Bloomberg TV Malaysia, BFM 89.9, and NTV7, cementing his sterling reputation in the industry.