{"id":217474,"date":"2019-03-25T09:43:27","date_gmt":"2019-03-25T13:43:27","guid":{"rendered":"https:\/\/insidebitcoins.com\/?page_id=217474"},"modified":"2024-01-15T13:34:51","modified_gmt":"2024-01-15T13:34:51","slug":"spotify","status":"publish","type":"page","link":"https:\/\/insidebitcoins.com\/buy-stocks\/spotify","title":{"rendered":"Buy Spotify Stock: How To Invest In SPOT And What To Look Out For"},"content":{"rendered":"
<\/a>With access to over 200 million music fans on Spotify, the route to promoting your singing career no longer has to be through the local bar circuit or major record labels. Music lovers enjoy their favourite music on the most popular streaming music app in 78 countries around the world. As the music industry transitions to a streaming model, Spotify is becoming profitable by helping independent labels and artists thrive.<\/p>\n This guide looks at how to assess Spotify’s future growth opportunities, value Spotify stock, and find the best Spotify stock brokers as the audio streamer expands its market share with more original content.<\/p>\n\n <\/a><\/p>\n As the music industry moves to a streaming model, is it a good time to invest in Spotify – the leading streamer of music and podcasts? Spotify’s goal is to develop the platform that will let one million artists live off their music. Beyond supporting the independent music scene, more independent and original content will reduce Spotify’s dependence on the big record labels.<\/p>\n As long as Spotify does not own the rights to the catolog of songs it streams, it must pay royalties to the music studios. Like video streaming service Netflix, Spotify is finding itself held hostage to increasing licensing fees. But rather than watch its profitability erode, the largest streamer of movies and TV programs starting producing original shows, and gave investors a reason to buy Netflix stocks<\/a> again.<\/p>\n Spotify is following Netflix into original and indie content.<\/p>\n Low content development costs<\/strong> Growing global subscribership<\/strong> Increasing user engagement<\/strong> Rising content costs<\/strong> Licensing deal negotiations<\/strong> Unhappy artists<\/strong> As Spotify streams into new global markets, its challenge is increasing average user revenues while lowering the licensing fees it pays to studios. So far, the company has been masterfully orchestrating this feat. Spotify’s margins are expanding as it prepares to turn the corner to profitability. The pure streaming music plays – Spotify, Pandora, Napster, Deezer – are entering a profitable stretch. Spotify’s price-to-sales ratio is 4.26. While the cost of sales is steadily rising with the subscribership base, the gross margin is widening. The value generated per subscriber has jumped 40 percent over the cost of subscriber acquisition.<\/p>\n <\/a><\/p>\n \n<\/p>Find in This Article<\/h3>\n
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Should you invest in Spotify?<\/span><\/h2>\n
Pros of buying Spotify stock<\/h3>\n
\nAn important difference is Netflix paid $13 billion to develop new movies and shows in 2018. Most of Spotify’s original content is developed by the users, themselves. Spotify has bought the largest production house for making podcasts, Gimlet, which adds a roster of narrative, interviews and sponsored podcasts (by Virgin Atlantic, Tinder, and Lyft, for example) to Spotify’s dozen or so exclusive shows.<\/p>\n
\nSpotify is the world’s leading music and podcast streaming service. After adding more than a dozen new countries in the Middle East and North Africa at the end of 2018, over 200 million active monthly users in 78 countries use the service.<\/p>\n
\nAdding podcast services is one way Spotify is increasing user engagement. Spotify’s podcast listeners are twice as engaged on the service as music-only listeners. Paid subscribers are spending 25 percent more time listening to the growing library of independent music content. Additionally, Spotify has invested in technology to improve music curation, recommendations and lists.<\/p>\nCons of buying Spotify stock<\/h3>\n
\nSpotify currently pays out 70 percent of revenues in artist royalties. In the US market, music royalty fees are rising on an escalating scale over the next five years.<\/p>\n
\nSpotify is in negotiations to establish new licensing fees with the major labels. Universal, Sony and WarnerMedia own the rights to 70 percent of the world music market and independents 30 percent. Spotify’s licensing fees could increase or stay the same.<\/p>\n
\nYou will have a hard time convincing Sean Mendes that the Spotify artist royalty payment system is not fair. The young Canadian self-launched his career through Spotify and YouTube streaming, racking up close to 8 million in equivalent album sales. Still some artists want a bigger cut of the streaming service’s revenues.<\/p>\nSpotify Stock: Current Prices and Summary<\/span><\/h2>\n
SPOT price quote<\/span><\/h3>\n