Will Spotify Earnings Show That Podcasts Can Drive Subscriptions?

Sean Burch
·1 min read

With Spotify set to report its Q4 earnings on Wednesday, it’s worth asking: Has the streaming giant’s big bet on podcasting actually helped it gain more subscribers? It’s a timely question, and not just because of Spotify’s earnings date. A recent report from Citi warned Spotify has “not seen a material positive inflection in app downloads or Premium subscriptions” from its podcast push. Spotify did not respond to TheWrap’s request for comment. Citi downgraded Spotify’s stock to “sell” from “neutral,” and Spotify’s share price, which was up past $350 per share in early January, has taken a slight hit in recent weeks and is now trading at about $325 per share. “If we were to see a material positive inflection in app downloads or Premium subs (from higher gross adds or materially lower churn), we would alter our view,” Citi’s analysts said. “But, our fear is that if podcasting doesn’t provide a way for Spotify to shift away from music label dependence, [Wall Street] may reassess the underlying value of the business. And, that would be bad for Spotify’s multiple and equity value.” Also Read: Tech Talk With Sean Burch and Alex Kantrowitz: Spotify's 'Smart' Bet on Joe Rogan and Apple's...

Read original story Will Spotify Earnings Show That Podcasts Can Drive Subscriptions? At TheWrap