Spotify's dive into podcasts is bringing in listeners – and advertising. But so far it hasn't reshaped the company's margins.
The key would be podcasts, executives said, along with a new foray into audiobooks. Within three to five years, podcasts could bring in gross margins of 30-35%, which could later rise to 40-50% — far more than the company can earn from recorded music.The company’s podcast business hasn’t come cheap, though.
Last year was difficult for stocks in general, especially those of many technology companies, but Spotify has suffered more than most. Riding high on lockdown-time gains, its share price peaked at $364.59 on Feb. 19, 2021. By a year later, it had fallen 58% to $152.27, and then on Nov. 4, 2022 bottomed out at $69.29 — 81% below its all-time high closing price. Had it made more progress on improving margins, Spotify’s share price probably would have weathered the storm a bit better.
The market’s response to the news was positive, but muted. Spotify shares closed on Monday at $99.94, up 2.1%, after spiking to $104.00 that morning. “I think it’s the right strategy,” says Bazinet. “It’s going to be difficult to shift the balance of power with record labels.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
8 Major Grocery Chains That Went Out of BusinessGrab your grocery cart and take a trip down memory lane to remember the once-popular grocery chains that have since gone out of business.
Read more »
Hillary Clinton went far beyond either Biden, Trump in mishandling of classified docs: Former DOJ officialUC Berkeley law professor John Yoo joins 'Sunday Night in America With Trey Gowdy' to raise concerns over the mishandling of classified documents.
Read more »
Spotify to cut staff as soon as this week - Bloomberg NewsSpotify Technology is planning layoffs as soon as this week to cut costs, Bloomberg News reported on Sunday, joining the likes of Alphabet Inc , Amazon.com Inc , Microsoft Corp who have cut thousands of jobs recently.
Read more »
Spotify reportedly planning layoffs as soon as this weekAfter slowing its pace of hiring last year, Spotify Technology SA is planning layoffs as soon as this week, according to a new report, adding to the wave of...
Read more »
Spotify Layoffs Expected as Soon as This WeekThe audio company employs around 9,800 people.
Read more »
Spotify layoffs: Music streaming business to cut 6% of workforceOver the past few months, major tech companies have swiftly reversed a pandemic hiring spree that saw them add thousands of workers to keep up with a surge in demand from households and businesses for services such as online shopping and videoconferencing.
Read more »