Spotify (SPOT) Exploring New Ways For Monetization, Struck Another Acquisition Deal

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Spotify Technology S. A. (SPOT) is continuing its acquisition approach, this time with Megaphone, an advertisement and publishing site for podcasts, which will be the company’s latest acquisition.

For the latest acquisition, Spotify will pay $235 million. This implies that in recent months the cumulative amount of acquisitions of all podcasts reached $800 million. And adding partner programs with famous people, the overall investment rises to nearly $1 billion.

The 2021 Backdoor Crypto Portfolio (free)

Even if you’re not actively in crypto, you deserve to know what’s actually going on...

Because while leading assets such as Bitcoin (BTC) and Ethereum (ETH) are climbing in value, a select group of public “crypto stocks” are surging right along with them. More importantly, these stocks are outpacing the returns these leading crypto assets aren already producing.

Click here to get the full story… along with our long list of backdoor Bitcoin strategies. It’s free.


Because of the aggressive acquisition strategy, question arises around importance of content and partner programs for Spotify to invest in.

The main reason for such investments is the high competition in the streaming services industry. This suggests that to attract listeners, Spotify needs to deliver exclusive services. The business has deals with influential podcast authors like Joe Rogan, Kim Kardashian, and the Barack and Michelle Obama-owned Higher Ground production centre.

In other words, Spotify already has high-quality content, but the issue of monetization of that persists. Megaphone, which will supplement its own advertisement business with Spotify, will assist the company do this. A streaming ad insertion (SAI) technology for podcasts appeared on the streaming site at the beginning of this year.

Traditionally, ads are read out manually by hosts or podcast producers, but these ads may not be presented to all listeners. Based on listener data, Spotify can use the SAI service to better target ads. The acquisition will extend the reach of Megaphone to more than 20,000 advertisers and publishers.

Introducing a podcast subscription is another way to monetize Spotify. The company is currently conducting a customer survey on their stance on subscriptions which could cost them from $3 to $8 per month. If users kept their loyalty to the new idea, then Spotify will have another revenue-enhancing tool.

Spotify Technology S. A. (SPOT) stock was up 1.03 percent on Wednesday and settled at $253.029. Company’s current market capitalization stands at $47.88 billion.

Sign up for our FREE Newsletter and get:

Leave a Comment

Your email address will not be published. Required fields are marked *

Sign up for our FREE Newsletter and get:

Get The Best Stocks To Trade Every Day!

Join now to get the pre-market morning brief 100% free

We do not sell or share your information with anyone.

Get Best Morning Financial Newsletter... 100% Free

Best stocks ideas

Analysts’ Upgrades & Downgrades

Important Earnings

Insider Watchlist

We do not sell or share your information with anyone.

Get The Best Stocks To Trade Every Day!...100% Free

We do not sell or share your information with anyone.