SPOT might go in a number of directions here, but it’s worth remembering that the company’s acquisitions in the last 24 months have primarily been podcast-related.
For example, in November, we discovered that Spotify was purchasing Megaphone, a podcast advertising and publishing platform, for $235 million in cash.
Spotify has spent more than $800 million on podcast-related acquisitions by November 2020, thanks to the $235 million spent on Megaphone.
In 2019, Spotify spent $375 million on three podcast companies: I New York-based Anchor FM, which allows users to create and distribute podcast content, which it purchased on February 14 for €136 million ($154 million); (ii) podcast producer Gimlet Media, which it purchased in April 2019 for $55 million; and (iii) Parcast, which it purchased in April 2019 for $55 million.
In a deal revealed in February 2020, Spotify paid more than $200 million for the Ringer, a sports media outlet founded by Bill Simmons.
SPOT has spent a lot of money on exclusive podcast content and talent partnerships in the previous two years, such as with Joe Rogan for $100 million at the beginning of last year and with Harry and Meghan at the end of 2020 (in a contract estimated to be worth approximately $50 million).
Is Spotify owned by China?
Tencent attempted to purchase Spotify in September 2017 in order to fund its worldwide expansion outside of China. The merger never transpired, but Spotify and Tencent Music agreed to transfer ownership a few months later.
Tencent Music Entertainment Group received a 9% investment in Spotify, while Tencent received a 7.5 percent stake. Tencent and Tencent Music would eventually own around 9% of Spotify, making them the Swedish firm’s third-largest stakeholder.
Equity exchanges like these aren’t typical, as far as I’m aware. However, in my opinion, it made sense because:
- Spotify would not have been able to enter China on its own. According to Tencent Music’s IPO filings, it is unlawful in China for a corporation that defines culture to have foreign ownership, as Spotify clearly does. You might now say, “Isn’t Tencent Music, through its Nasdaq IPO, owned by both Spotify (10%) and other international investors?” That’s a different discussion altogether, but if you’re interested in the debate, “You can dive down that rabbit hole here: “Variable Interest Entity Structure.”
Despite the fact that Tencent Music and Spotify appear to be identical businesses, their revenues reflect a very different narrative. I believe that having a tight relationship with Tencent Music and learning from its playbook of integrating social experiences with music will benefit Spotify greatly.
When it came to negotiating with record labels, the equity transfer provided both firms more clout. Tencent gained even greater clout by purchasing 10% of Universal Music Group for $3.4 billion in 2019 and 5.2 percent of Warner Music Group for $5.2 billion in 2020.
The share swap took place in 2017, just before each company’s IPO, and many investors thought it would be beneficial for the firms to show solidarity in the run-up to their IPOs.
I believe Spotify has set an excellent example for an innovative method to acquiring access to the Chinese market by purchasing shares in a market leader that would otherwise be a direct competitor.
Dead bodies litter the path of Western firms attempting to enter China. Following the failures of Google and Facebook to effectively penetrate China, as well as the mixed outcomes of newer companies such as Uber, Western corporations have realized that directly entering China is a war that may not be worth fighting.
Who is Spotify owned by?
The music business has grown by 44% since its low point in 2014, owing mostly to a 500% growth in streaming income over the same time period. Spotify paid $5 billion or more in 2020, accounting for roughly 20% of global recorded music industry revenue, more than any other streaming service. That’s a huge number on its own, and it doesn’t take into account other music streaming services or other sources of revenue.
Is Spotify a good company?
Spotify is without a doubt one of the best companies I’ve ever worked for. I hold the team I had the opportunity to work with in high regard. The workplace culture is fantastic, with a terrific work-life balance. If you work part-time, they offer fantastic advantages.
Does Google own Spotify?
The acquisition provides Google/Alphabet a significantly stronger foothold in the music subscription industry, as initially reported by the Financial Times with more details provided by Bloomberg. The agreement also provides Google a significant advantage against rivals such as Apple Music, which is now the most popular streaming service in the United States based on paid subscriptions.
According to the Times, Apple’s meteoric rise may have fueled Google/on-again, Alphabet’s off-again takeover talks with Spotify.
Earlier, despite both parties’ interest, a spectacular rise in Spotify’s stock price, followed by a late-2018 drop, hindered negotiations.
Does Jay Z own Spotify?
Shawn Corey Carter celebrates his birthday today. To commemorate his 50th birthday, Jay Z has surrendered his entire music collection to Spotify, where he will undoubtedly profit from this gift to subscribers. Tidal, a competing music streaming service, is owned by Jay Z.
In April 2017, Z’s solo work was removed from both Apple and Spotify, but Apple Music was shortly restored; Spotify, however, was not. Spotify merely stated that the removal had been completed at the time “At the artist’s request.” The world’s most popular streaming service announced today, “Hov’s birthday greetings Hello, and welcome back to Spotify.”
What is Spotify CEO salary?
Daniel Ek’s total compensation at Spotify Technology S.A is €336,462. He is the Chairman of the Board, Chief Executive Officer, and Co-Founder of Spotify Technology S.A. There are 11 executives at Spotify Technology S.A. who make more money, with Dawn Ostroff earning the most at $7,484,030.
How does Spotify make money?
Ad revenue and subscriptions are Spotify’s two main sources of revenue. Spotify Premium subscriptions are said to account for over 90% of the company’s revenue, with over 200 million customers globally. The remainder comes from advertising revenue.
Is Spotify really free?
There’s no better time than now to give Spotify a try if you haven’t already. You only need an internet connection and a Spotify account to get started. Here’s how you can make one:
- On your computer or mobile device, go to the Spotify sign up page. You’ll be prompted to provide a valid email address, create a password, and select a username. You’ll also have to provide your gender and date of birth. After that, go ahead and click the green Sign up button.
- After that, you can select a subscription level. If you’re new to Spotify, you can get three months of Premium for free. We recommend giving it a shot because it has a lot of features that the free version lacks.
Is Spotify a failing company?
Despite the huge growth, Spotify recorded a net loss of $57 million due to $293 million in spending in their first year in the United States market. Spotify’s failure was not caused by new competitors such as Google, Twitter, or Apple.
Are the Beatles on Spotify?
Starting tomorrow, the original 13 Beatles albums, as well as a few post-1970 collections, will be available in the United States and around the world via Spotify, Apple Music, Google Play, Deezer, Rhapsody, and other music subscription services.
“If the Beatles were to reach out to a new generation of music listeners, they needed to be on all streaming platforms,” says Giles Martin, the son of original Beatles producer Sir George Martin, who oversees the remastering of the Beatles’ repertoire for new formats.
“The majority of music fans now listen to their favorite tunes via streaming.”
The announcement will not be life-changing for die-hard Beatles fans. If you’re anything like me, you’ve probably already bought every Beatles record at least once in your life–and you may even be wasting your money on newer vinyl reissues of their iconic albums. However, for music-service customers who are also Beatles aficionados, listening to Sgt. Pepper and The White Album alongside all of the other albums and playlists they’ve been digitally storing over the last few years would be far more convenient.
