#Spotify stock forecast 2025 free

Spotify will continue to grow the listener base in 2021 as it expands to new markets and penetrates existing markets.

#Spotify stock forecast 2025 free

Additionally, it generates revenue from both paid and free listeners on podcasts.

Where Spotify's contractually obligated to share a percentage of revenue, it can keep 100% of revenue from ads sold by its own podcasts.

Scaling the podcast business offers greater revenue and profit potential than music listening. Growing podcast listening is another means of improving product composition. And it could focus more on converting free listeners to paid subscribers in maturing markets. However, Spotify says it's seeing positive results with podcasts converting more listeners to paid subscribers. Ad-supported listener growth also outpaced subscriber growth in 2019, so it's not a trend isolated to the pandemic. That's a decrease from 2019 when 46% of listeners subscribed. It ended 2020 with 45% of listeners paying for a subscription. Improving the product composition means shifting more users from its ad-supported service to premium subscribers. The company will do all three this year in order to grow, whereas it previously relied on just the first two. Factors to consider for Spotify in 2021Įk pointed out there are three main ways Spotify can grow revenue: improve product composition, expand the user base, and increase pricing. That said, Spotify will have to exceed the high end of its guidance in order to meet analysts' original expectations, but that's certainly doable. In other words, the 2021 outlook is pretty much the floor of what investors should expect from Spotify this year.

Therefore, what you see reflected in the forecast is what I believe we will absolutely do.' During Spotify's fourth quarter earnings call, CEO Daniel Ek reminded analysts it only forecasts 'what we have a very high degree of certainty that we will achieve.' He went on to say, 'Given the uncertainty we face today, I suspect that our full-year 2021 plan will have a higher variance than prior years.