Date of Update: 2/1/2021


Ticker: SPOT

Theme: Audio

Country: Sweden

Sector: Media & Entertainment

Universe: Roundhill Streaming Universe

This is not a recommendation to buy or sell securities.


Company Description:

Founded in 2008, Spotify is the largest audio and music streaming platform outside of China, with over 320 million monthly active users and 144 million paid subscribers (Q3 2020).1 Unlike the region-locked Chinese apps operated by Tencent Music, Spotify is available globally in 93 markets. Recently, the company has expanded their breadth into podcasts, signing an exclusive multi-year deal with Joe Rogan believed to be worth $100 million, according to the WSJ. The company also offers audiobooks and spoken word content, as well as curated playlists from independent Spotify curators.

3 Company Facts:

  • Spotify had 144 million paid subscribers in Q3 2020, with average revenue per premium user amounting to $5.10.2
  • The platform has over 60 million tracks and has paid in excess of $23 billion to music rightsholders since launch.3
  • Spotify has a standalone iOS and Google Play app for radio streaming based on personalized recommendations, called Spotify Stations.

3 Industry Facts:

  • Goldman Sachs estimates there will be 1.2 billion paid music subscribers globally by 2030, up from 341 million in 2019 (13.4% CAGR).
  • According to the Digital Media Association, paid subscriptions in the US alone are projected to reach $11.6 billion by 2026.
  • Streaming services accounted for nearly 80% of all music revenue in 2019.4

3 Key Metrics:

  • Conversion rates (free to paid)
  • Subscriber churn
  • Daily and Monthly Active Users

This is not a recommendation to buy or sell securities.

Notable Brands:

Spotify Stations
Spotify Stations (standalone app for genre-based radio)