Date of Update: 2/1/2021

Spotify

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