Spotify Technology Community

Key Takeaways Spotify is wisely focusing on long-term objectives over short-term profitability. Leverage will shift from labels (suppliers) to Spotify (the aggregator) as scale continues to grow.

Key Takeaways Premium revenue to be kept in check by competition and market saturation. Gross margin will improve, but remain below 30%.

Catalysts Spotify will add new revenue through ads and audiobooks streams contributing up to 2B new revenue in upcoming 3 years Spotify price increases will increase their subscription revenue by 20% with less than 1 percent loss of subscribers Assumptions Spotify MAU growth rate will slow dowb by 1% YoY for next 4 years as they have reached most of the globe already Spotify will add new revenue streams contribuiting upto 1B new revenue in upcoming 3 years Risks US election and general sentiment with tech stocks might affect the stock Price increases give an edge to apple and amazon music to capture market Are there any industry tailwinds this stock is benefitting or hindered from?

Catalysts (optional) User Growth and Engagement Will Remain The Focus Over Profitability Streaming Economics Will Favour The Suppliers, Users AND The Aggregators. Being An Audio Platform Will Lead To Less Reliance on Variable-Cost Music The Market Will Come To Understand Spotify’s Current and Future Profitability Assumptions (optional) Retain Dominant Market Share Position In Paid Music Streaming 325m paid subs by 2028 (35% of 930m market).

Key Takeaways Expansion into audiobooks and AI-enhanced music discovery are set to boost user engagement and revenue growth. Improved monetization strategies and innovative advertising solutions could enhance margins and diversify earnings sources.