Spotify Technology SA

Spotify is formalizing its enterprise and developer tools business with the launch of technology.spotify.com, a new site that makes its internal technology available to outside companies. The effort is not entirely new: Spotify has offered products to the wider tech community since 2020, when it open sourced Backstage, a platform and framework for building customizable developer portals. It has also sold its enterprise-focused software experimentation platform Confidence since 2023 and its enterprise software development platform Portal since 2024, and earlier this year began selling Xirp, its developer tool for managing AI coding agents. The new site will house both open source and paid solutions built to serve Spotify's own audience of 777 million monthly active users, and Spotify's SVP of Technology & Platform, Tyson Singer, said the company is often asked why it is in the business of selling software. Spotify has not disclosed how much revenue its enterprise sales generate, and the technology website does not include pricing; companies instead fill out a form to contact sales.

Spotify has secured a new multiyear licensing and ad-sales deal with Joe Rogan worth an estimated $250 million, according to a report by The Wall Street Journal. The agreement cements the streaming giant's grip on the world's most-listened-to podcast. The Wall Street Journal notes that the new deal carries terms similar to Rogan's previous contract, allowing for broad distribution across platforms with an estimated earnout of $250 million, while Rogan and his team retain full editorial control. Spotify has not officially confirmed the dollar figure or disclosed the precise contract length beyond "multiyear." The Joe Rogan Experience reached approximately 28.4 million Americans in Q2 2026, up sharply from 6.6 million at the start of 2020, according to Edison Research, and has ranked No. 1 on Edison's most-listened-to podcast list in the U.S. since tracking began in 2019. Spotify first signed Rogan in 2020 in a $100 million-plus exclusivity deal and renewed the agreement in early 2024, opening distribution to YouTube and other platforms.

Walmart is expanding its Walmart Connect advertising unit so that advertisers can use its shopper data across live TV, streaming audio and connected TV. The retailer is partnering with Warner Bros. Discovery, Spotify and Yahoo to extend commerce media campaigns beyond its own properties, letting marketers programmatically activate Walmart shopper audiences and measure performance across those third party media platforms. Walmart Connect's advertising business is already framed as a roughly 70% margin business with incremental profit, and the company is trying to turn its shopper data and physical footprint into a media network that reaches far beyond its own apps and website. The clearest early signal for investors will be whether management breaks out more detail on Walmart Connect, such as ad revenue growth or advertiser count linked to the new partners, in upcoming quarterly updates.

Spotify announced Wednesday that it is expanding audiobook access to over 180 markets worldwide, covering regions across Europe, the Americas, the Caribbean, the Middle East, Africa, and Asia. The rollout begins today and will continue over the coming months, bringing audiobooks to more than 750 million users and sharpening Spotify's competition with music streaming providers and audiobook apps like Audible. Previously, audiobooks were available primarily in English-speaking markets such as the U.S., U.K., Ireland, Australia, and New Zealand, as well as in Germany. Spotify said it has more than 350,000 titles for its new markets and has expanded its collection to over 120 languages, with users in Spain gaining access to over 45,000 titles in Spanish. The company is working with more than 300 publishers worldwide, including Planeta and Mondadori, to increase titles across markets. Premium subscribers can listen to 12 hours of audiobooks in eligible countries such as Brazil, Mexico, Colombia, Poland, Chile, Norway, and Peru, while a standalone Audiobook+ subscription offers a 15-hour allowance, and individual titles can be purchased directly. Spotify is also adding an Audiobook+ add-on for student plans in select regions in November; since its launch last year, Audiobook+ has gained over 1 million subscribers and generated over 100 million in annual recurring revenue. The company noted that monthly listeners of audiobooks grew by 40% over the past year and listening hours rose by 30%.

GMM Music Public Company Limited, or GMM MUSIC, reported first-half 2026 results with total revenue of 2,161.2 million baht, up 12.2% from the same period a year earlier, and net profit of 280.7 million baht, up 29.2%. Its net profit margin rose to 13.0% from 11.3% in the same period last year, amid a slowing economy and an entertainment business that has seen continuous negative growth. The artist management business posted a record-high revenue of 730.8 million baht, growing 17.9%, while the digital music business generated 533.3 million baht, growing 15.2%, driven by partnerships with YouTube, Spotify, TikTok and Meta, with revenue on TikTok growing 82.9% and Spotify growing 29.5%. The copyright management business had revenue of 156.1 million baht, growing 12.3%, and together with digital music revenue accounted for as much as one-third of the company's total revenue. The showbiz business generated 496.3 million baht, growing 8%, with 272,462 attendees in the first half and a compound annual growth rate of 20.6% in total attendance for the full year. Chief Executive Officer Phawit Chitrakorn said the company is intensively focusing on re-engineering the organisation, a project that began last year, with a focus on five-year planning so that GMM Music becomes stronger and remains a pillar of revenue generation for GMM GRAMMY going forward.

A federal judge on September 1, 2026 declined to allow an early appeal of the ruling that Spotify Premium qualifies as a music-and-audiobook bundle, leaving a favorable decision intact for Spotify USA Inc., the U.S. subsidiary of Spotify Technology S.A. The remaining dispute concerns the bill: the Mechanical Licensing Collective alleges that subscription revenue is being allocated and reported incorrectly, and that the price of Audiobooks Access overstates the value of Premium's audiobook component, reducing the revenue share attributed to music. The September 1 order also struck the subsidiary's defense that MLC had unfairly singled it out for enforcement. Spotify Technology S.A. disclosed approximately €473 million of potential liability for March 1, 2024 through June 30, 2026 if MLC ultimately succeeds completely in challenging Premium's classification as a bundle, though that estimate concerns the original bundling challenge and the remaining calculation claims require separate quantification. The January 2025 ruling recognized that the 15 hours of monthly audiobook listening included in the plans at issue had more than token value, and Spotify reported 300 million Premium subscribers, up 9% year over year, and revenue of €4.8 billion, up 14%, in second-quarter results announced August 4.

Spotify Technology S.A. announced a partnership with Genius on September 11 to stream the company's video series directly on the platform. Spotify users can now stream full video episodes of Genius' live performance franchise Open Mic, while Verified, Genius' artist-led lyric breakdown series, will add a deep backlog of older episodes alongside new releases. Since launching in 2016, both franchises have amassed over 3.7 billion combined views. The move comes after Spotify reported €4.8 billion in total revenue in Q2 2026, up 14% year-over-year, with 300 million Premium Subscribers, up 9%, 777 million total Monthly Active Users, a record 33.4% Gross Margin and €655 million in operating income. Spotify aims to deepen user engagement and expand its multimedia footprint, though the ultimate return depends on monetizing video impressions through advertising without slowing user growth.

Spotify Technology's second-quarter profitability was driven by gross-margin expansion, with gross margin reaching 33.4%, up 193 basis points year over year. The improvement came from gains in both the Premium and Ad-Supported businesses, though the underlying drivers differed: in Premium, revenues grew faster than music costs after accounting for marketplace programs, while lower audiobook and video-podcast costs also helped, and in Ad-Supported, favorable podcast and tax effects more than offset higher music costs and other costs of revenue. Spotify reported operating income of €655 million in the quarter, even as expenses rose on temporary investments in marketing and cloud and artificial intelligence initiatives, excluding social charges, and operating expenses included €1 million in social charges related to share-based compensation. The company had 7,302 full-time employees worldwide at quarter-end, and the results suggest its improving cost-to-revenue relationship, rather than expense restraint, drove the profitability advance. Spotify, Apple and Amazon each currently carry a Zacks Rank #3 (Hold).

Spotify said Friday it is expanding its video offering through a partnership with music-lyrics platform Genius, adding episodes of two of Genius' established artist-focused series to its service. The agreement gives Spotify users access to full episodes of Open Mic, which features artists performing their songs in stripped-down settings, and the platform will also carry older episodes of Verified, a series centered on artists explaining their lyrics and creative process, alongside new releases. Genius said Open Mic and Verified have accumulated more than 3.7 billion views combined since their respective launches in 2016. Rapsody is featured in the first new Open Mic episode under the expanded arrangement, performing "Pick A Side," a track from her latest album, God Gotta Afro & Gold Hoops, with new episodes scheduled for Thursdays, while Verified will release new episodes twice a week, on Wednesdays and Fridays. The partnership builds on Spotify's earlier rollout of Verified and gives Genius a wider distribution channel for its video programming.

Spotify Technology increased its equity buyback authorization by US$1.50 billion on August 20, 2026, while Barclays reported that major music labels' streaming growth has moved closer to Spotify's, signaling a change in how streaming gains are shared across the industry. Although Spotify's 14.6% streaming growth in Q2 2026 still outpaced labels' 8.3% average, the shrinking gap points to music companies gaining more leverage in negotiations over future streaming economics. The buyback increase supports the near-term equity story around capital returns, but the narrowing growth gap with labels highlights that bargaining power over royalties remains a key risk that could pressure margins more quickly than many expect. Spotify's strong Q2 2026 results, with revenue of €4,777 million and net income of €545 million, underpin the buyback capacity, but rising label leverage could still reshape Spotify's economics. The company's narrative projects €25.9 billion revenue and €4.2 billion earnings by 2029, requiring 13.9% yearly revenue growth and about a €1.5 billion earnings increase from €2.7 billion today, while some optimistic analysts model revenue near €27.8 billion and earnings near €4.7 billion by 2029.

Azerion Group NV reported record Q2 2026 EBITDA of €11.3 million, up 2.7% from €11.0 million in Q2 2025, despite a 5.9% revenue decline to €127.7 million. The company's cost-saving and synergy projects drove the improvement, with the Advertising Platform segment's EBITDA rising 20.5% to €10.0 million. However, total group revenue for H1 2026 fell 2.5% to €245.1 million, and adjusted EBITDA dropped 10.8% in Q2 to €14.0 million. The company revised its full-year 2026 revenue guidance to stable compared to 2025, while reaffirming its medium-term adjusted EBITDA margin target of 14-16%. Key developments include the Spotify Ad Exchange integration, a partnership with Westfield Rise, and the transfer of its Eniro stake to Flavus Invest AB for cash and a 35% equity interest.

Spotify Technology S.A. announced that its Board of Directors has approved an increase in its share repurchase program by an additional $1.5 billion. With $723 million remaining under the current repurchase program, the increase brings the total authorization under the share repurchase program to approximately $2.223 billion. The repurchase program will run for as long as the shareholders' authorization to the Board of Directors to repurchase ordinary shares remains in force, including by renewal. The timing and actual number of shares repurchased will depend on a variety of factors, including the renewal of repurchase authorization by shareholders, price, general business and market conditions, and alternative investment opportunities. The repurchase program does not obligate the Company to acquire any particular amount of ordinary shares, and the repurchase program may be suspended or discontinued at any time at the Company's discretion.

Spotify and Merlin announced a licensing agreement that lets independent artists opt into a paid fan-made covers and remixing tool. Merlin represents independent labels covering 15% of the global recorded music market, extending the tool beyond major labels. The feature is part of Spotify's broader push into AI-driven engagement, including Prompted Playlist and AI DJ, as second-quarter revenue rose 14% year-over-year to about $5.56 billion and net income reached roughly $634 million. Co-CEO Gustav Soderstrom sold 20,833 shares on August 3 for $10.6 million under a pre-set Rule 10b5-1 plan, cutting his direct holdings by 51%. Spotify's stock trades at a forward P/E of 35.34, down 37% from its peak, as the market prices in growth that leaves little room for error if adoption of paid extras disappoints.

Spotify reported second-quarter 2026 results, crossing 300 million subscribers for the first time and achieving a record gross margin of 33.4%. Revenue grew 15% year-over-year on a constant currency basis to EUR 4.8 billion, accelerating from 14% in the first quarter, while free cash flow reached EUR 797 million. The company added 7 million net subscribers, beating its guidance by 1 million, and saw ad-supported revenue grow 3%, with automated channels representing nearly 40% of that segment. Spotify also announced a new licensing deal with Merlin, bringing 30,000 independent labels into its forthcoming AI-powered covers and remixes product, and highlighted early success for its Reserved ticketing feature, which has already reserved nearly 100,000 tickets in partnership with Live Nation. Looking ahead, Spotify guided for 305 million subscribers and EUR 5 billion in revenue in the third quarter, while continuing to expect full-year margin improvement and meaningful free cash flow growth.

Apple has quietly raised prices on several of its subscription services, including the Apple One bundle and Apple Music. The Apple One Family plan now costs $27.95 per month, up from $25.95, while the Premier tier increased to $39.95 from $37.95; the Individual plan remains at $19.95. Apple Music's individual plan rose to $11.99 from $10.99, the family plan to $19.99 from $16.99, and the student plan to $6.99 from $5.99. The company attributed the Apple Music increase to rising licensing costs. The move follows Spotify's own price hikes and narrows the gap between the two streaming rivals, though Apple Music remains cheaper than Spotify's standard individual plan.

Morgan Stanley analyst Sean Diffley says Netflix's engagement growth has decelerated from over 10% to just 1–2%, even as the company streams 200 billion hours annually. He notes that while streaming engagement is rising broadly, short-form platforms like Instagram and TikTok are growing fastest, and YouTube remains the '800 pound gorilla' competitor. To capture more leisure time, Netflix is exploring live events and has entered podcasting, which Diffley views as incremental mobile listening that complements its core evening TV viewing. The company is partnering with Spotify to leverage shared learnings in the podcast space.

Spotify Technology shares could be undervalued by about 35% based on a Discounted Cash Flow analysis, which estimates an intrinsic value of roughly $747 per share compared to the current price. The model uses the company's latest twelve-month free cash flow of approximately €3.2 billion and assumes continued growth. However, a P/E-based check shows the stock trading at around 32.3 times earnings, above a tailored fair P/E of about 27.3 times, suggesting it may be overvalued on that metric. The mixed picture comes as Spotify recently removed around 500,000 fraudulent streams, highlighting platform integrity risks that may weigh on market sentiment.

Brown Advisory initiated a position in Spotify Technology during the first quarter of 2026, citing an attractive entry point created by market concerns over AI-generated content. The firm highlighted Spotify's dominant position in music streaming, growing traction in podcasts and audiobooks, and increasing focus on profitability through margin expansion and new monetization levers. Spotify reported total revenue of 4.5 billion euros in the first quarter, a 14% year-over-year increase in constant currency. The stock closed at $518.00 per share on July 1, 2026, with a market capitalization of $106.65 billion. Brown Advisory believes Spotify is well positioned for sustained long-term growth.

Spotify and Netflix both reported Q1 2026 earnings that sent their stocks lower, but for very different reasons. Spotify beat profit estimates with genuine margin expansion, posting revenue of $4.53 billion, up 8.19% year over year, and EPS of $3.45 against a $2.950 consensus, while Premium subscribers reached 293 million and Premium gross margin expanded from 34% to 35%. Netflix booked $12.25 billion in revenue, up 16.19%, but EPS of $1.23 missed the $1.345 consensus, and its headline $5.09 billion free cash flow was inflated by a $2.80 billion one-time termination fee from the abandoned Warner Bros. deal. Spotify is doubling down on audio with podcasts and audiobooks, while Netflix is sprinting into GenAI filmmaking, live sports, and kids gaming simultaneously. Spotify's $824 million free cash flow and expanding Premium margins signal a compounding audio model, despite a 42 P/E and a €410 million MLC lawsuit risk.

Barometer has partnered with Spotify to bring episode-level brand suitability analysis and contextual targeting to programmatic podcast ads at a global scale. The capabilities are available for advertisers buying through the Spotify Ad Exchange on The Trade Desk. Barometer’s AI engine analyzes every podcast episode before release, generating rich data for precise pre-bid targeting. The solution is officially live and available for programmatic activation today.