Spotify Rolls Out Music Videos to 85 Markets, Boosting Engagement for Premium Users

Benzinga · 10/15 16:38

Spotify Technology SA (NYSE:SPOT) has expanded its music video feature, initially launched in beta, to 85 additional markets.

The rollout gives Premium subscribers in these markets access to a growing library of music videos from a wide range of artists, including Charli XCX, LISA, and Fontaines D.C.

The streaming platform aims to deepen the connection between fans and artists by combining audio and visual content.

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The expansion follows the positive response from the 12 initial markets where Spotify introduced music videos earlier this year.

Music videos will likely boost user engagement, with listeners being 34% more likely to re-stream a song after watching its video. Songs discovered with videos are also more likely to be saved or shared the following week.

Spotify is enhancing the music video experience with new features that allow users to switch seamlessly between audio tracks and music videos on mobile and desktop devices.

As the company continues to evolve, Spotify plans to expand its music video catalog, reaching more markets over the coming weeks.

Additionally, Spotify has made strides in adding features like Countdown Pages, Clips, and Artist Profiles.

Spotify stock has surged 134% in the last 12 months. The company clocked fiscal second-quarter 2024 topline growth of 20% to $4.099 billion, missing the analyst estimate of $4.170 billion. 

Total MAUs (Monthly Active Users) rose 14% to 626 million. It reported 246 million Premium subscribers. Ad-supported MAUs grew 15% to 393 million.

Key positive analyst views on Spotify:

Goldman Sachs analyst Eric Sheridan flagged Spotify as the undisputed global audio platform leader, outperforming the S&P 500. The analyst highlighted the potential revenue contribution from a deluxe tier for Spotify over the long term.

Recently, Jefferies identified Spotify as a key beneficiary of the thriving anime industry, which has the potential to reach a valuation of $60.1 billion by 2030 from $31.2 billion in 2023. The analysts noted the global entertainment industry’s growing focus on anime-related businesses.

Price action: SPOT stock is down 0.48% at $370.70 at the last check on Tuesday.

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Photo courtesy: Spotify