3,882
edits
Spotify:Quarterly Results/2023 Q3: Difference between revisions
Spotify:Quarterly Results/2023 Q3 (view source)
Revision as of 21:30, 23 October 2023
, 23 October 2023→Analyst Opinions
| Line 111: | Line 111: | ||
* Analyst Benjamin Swinburne said Spotify’s growing user engagement and continued product developments will its market share and pricing power. | * Analyst Benjamin Swinburne said Spotify’s growing user engagement and continued product developments will its market share and pricing power. | ||
* He also sees an “increasingly rational competitive environment.” | * He also sees an “increasingly rational competitive environment.” | ||
=== Redburn Atlantic === | |||
Redburn Atlantic downgraded Spotify to neutral from buy and lowered its price target to $160 from $170 following the firm’s decision to offer audiobooks to its premium subscribers. | |||
* Analyst Agnieszka Pustula said the move may lower Spotify’s margin by 200 basis points since the company will spend around €80 million in audiobooks royalties for the UK and Australia market launch and additional €180 million for the U.S market, and that new subscribers would generate negative gross margins. | |||
* Pustula also thinks Amazon, its competitor in Audiobooks market, may respond by bundling up its audiobooks feature with Amazon Music; hence reducing Spotify’s competitive advantage and pricing power. | |||
=== Monness, Crespi, Hardt === | === Monness, Crespi, Hardt === | ||