Since March 23, the Spotify share has gained more than 100%. With the clearly stated ambition of becoming a major giant in the field of podcasts, the Swedish group has greatly accelerated in recent months the signing of agreements to expand its catalog of content. This week, he has just recruited the heroes of DC Comics (Batman, Superman, WonderWoman ...) and Kim Kardashian. The Swede has signed a multi-year agreement with DC Comics and Warner Bros, subsidiaries of WarnerMedia. He will have exclusivity on a series of original adventure story podcasts, inspired by the universe of these very popular superheroes. The agreement also provides for "comedy and drama podcasts" based on the Warner Bros. film catalog.
Another choice of choice: a podcast on criminal cases produced by reality star Kim Kardashian West, who has become a contender of miscarriages of justice, an activist in American criminal justice reform, and who plans to take the California bar competition in 2022. The announcement of these agreements was greeted with enthusiasm on the New York Stock Exchange: Spotify shares jumped more than 12% on Thursday and gained even more than 6% on Friday.
Growth lever
In just 16 months, Spotify has positioned itself as the world's leading player by investing more than $ 600 million, mainly in content production. In May, he had already acquired the exclusivity of the No. 1 podcast in the United States, the "Joe Rogan Experience", which claims 190 million downloads per month. The European company did not reveal the amount paid for this exclusivity, but the Wall Street Journal put forward the figure of $ 100 million. " This is just a license agreement, so Spotify will have no creative control over the show, " said podcast author Joe Rogan.
Spotify surpassed Apple as the first podcast listening medium in the first quarter in North America and the United Kingdom, according to Midia Research. The company sees podcasts as an important growth driver for the coming years, even if it is today a niche market. " We not only see attractive monetization potential for these exclusives, but we envision future leverage for premium subscription prices and label negotiations ," writes Mark Zgutowicz, Internet and media analyst at Rosenblatt.
In early 2019, Spotify bought Gimlet Media, the podcast specialist for $ 230 million, the production interface Anchor for more than $ 100 million and another studio specializing in criminal podcasts, Parcast. In early February, she also got hold of the production studio The Ringer, which specializes in sports podcasts and around pop culture.
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At the end of the first quarter, Spotify claimed a portfolio of paying subscribers of 130 million users and a net profit of 1 million euros. The company has revised upwards its forecast of revenues for 2021, which also explains the enthusiasm of investors for the title which is now worth 240 dollars.