Spotify Technology SA (SPOT) has announced that it has launched video podcasts for both free and premium users.
The popular streaming site says that only certain podcasts will be allowed to use video starting with “select creators.” The expansion into video will allow these creators to expand their presence to such popular formats as YouTube, which offers its own set of ad revenue incentives.
The company stated in a July 21 press release, “The new feature allows select creators to bring both audio and video content to Spotify, enabling them to connect more meaningfully with their listeners, expand viewership, and deepen audience engagement. It’s a way to enrich the audio experience—for fans and creators alike.”
The announcement comes in light of popular podcaster Joe Rogan being signed for an exclusive licensing deal in May with Spotify. Rogan’s podcasts known as The Joe Rogan Experience are also recorded in video which are available on YouTube. The deal will see his debut in September with podcast videos available through Spotify in conjunction with additional YouTube broadcasts.
On July 22, Spotify also announced a marketing agreement with Vivendi’s (VIVHY) Universal Music Group for a collaboration on new, state-of-the-art marketing campaigns across Spotify’s platform. Spotify CEO Daniel Ek said, “From their early experimentation with Marquee to testing new experiences like Canvas, Universal Music Group has been an important partner in helping to shape the development of our marketing tools.”
He added, “With today’s announcement, we will expand on this level of early-stage innovation and further strengthen our partnership and shared vision for helping advance artists at all stages of their careers.”
SunTrust Robinson analyst Matthew Thornton believes that Spotify’s Q2 earnings will be “solid.” He highlighted SPOT’s market expansion and the launch of The Joe Rogan Experience in Q4. The analyst reiterated a Buy rating on the stock and raised his price target from $167 to $290 with 0.13% upside potential.
Overall, 13 analysts assign Buy ratings, 6 Hold ratings, and 4 Sell ratings, giving SPOT a Moderate Buy Street consensus. The average analyst price target stands at $248.62, suggesting 14% downside potential, with shares up 94% year-to-date. (See Spotify’s stock analysis on TipRanks).
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