Spotify also calling out AI as a driver of user engagement, but the company has yet to capitalize on the technology to bolster its ad business. AI could ultimately pose an even more existential threat and Julia Borson has that in today's tech check. Julia deploy AI to drive ad growth just as Meta and Alphabet have used AI to improve ad creation, targeting, and measurement.this as it also watches the threat of AI to intellectual property, showing how AI's power can be a double-edged sword. Now, Spotify sayin ...

So many big movers today. Look at shares of Spotify taking a dive after the music streamer posted a loss and weaker guidance for the current quarter. And though the company said AI has helped with user engagement, it isn't bolstering the ad business enough and could also pose a threat.Julia Borston digs into all that in today's tech check. Julia, so what's the story here. Well, Sarah, Spotify's declining ad revenue is the company's biggest depo disappointment.So now Spotify needs to deploy AI to drive ad gr ...

Financial Data and Key Metrics Changes - In Q2 2025, Spotify's Monthly Active Users (MAU) grew by 18 million to 696 million, exceeding guidance by 7 million [24] - The company added 8 million net subscribers, reaching a total of 276 million, which is a 12% year-on-year increase and SEK 3 million ahead of guidance [24] - Total revenue for the quarter was SEK 4.2 billion, reflecting a 15% year-on-year growth on a constant currency basis [24] - Premium revenue rose 16% year-on-year on a constant currency basis, driven by subscriber growth and Average Revenue Per User (ARPU) gains [25] - Gross margin was reported at 31.5%, in line with guidance, expanding approximately 230 basis points year-on-year [26] Business Line Data and Key Metrics Changes - The advertising business delivered currency-neutral growth of 5% year-on-year, with automated sales channels being the largest contributor [25] - The conversion rate from free to paid users continues to improve, indicating healthy growth in subscriber acquisition [14] - Video content consumption is growing 20 times faster than audio-only consumption since 2024, with over 350 million users streaming video podcasts [18] Market Data and Key Metrics Changes - Spotify holds a 45% market share in music streaming services, excluding China and Russia, which has been steadily growing [18] - The company has seen a 65% increase year-on-year in users streaming video podcasts [18] Company Strategy and Development Direction - Spotify aims to reach 1 billion subscribers, focusing on creating lifetime value rather than optimizing for short-term performance [10][11] - The company is recalibrating its advertising strategy to accelerate growth, with a focus on improving execution and enhancing ad technology [15][16] - Spotify is expanding its offerings across music, podcasts, and audiobooks, indicating a multi-format strategy that is yielding positive results [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's fundamentals and user engagement, despite some challenges in the advertising segment [9][7] - The company anticipates that 2025 will be a standout year, with ongoing investments in innovation to enhance user and creator value [10][31] - Management acknowledged that while the advertising business has not met expectations, they remain optimistic about future improvements [7][15] Other Important Information - The company ended the quarter with DKK 8.4 billion in cash and short-term investments, indicating strong liquidity [29] - Spotify plans to utilize its share repurchase authorization of $2 billion to enhance financial flexibility [32] Q&A Session Summary Question: Update on introducing tiers or a tier for super fans - Management is excited about engaging super fans and is working on building products that cater to them, including an audiobook add-on subscription rolled out in 13 markets [35][37] Question: Change in gross margin guidance philosophy - Management clarified that there has been no change in guidance philosophy, and they aim to increase gross margins over time through various monetization strategies [39][41] Question: Influence of generative AI on productivity and product development - Generative AI is significantly speeding up prototyping and product delivery, allowing for more interactive consumer experiences [43][46] Question: Capital allocation and share buyback execution - The primary focus remains on growth opportunities, with share buybacks seen as a tool for flexibility [51][52] Question: Implied FX neutral ARPU trends for Q3 - Management expects ARPU to be flat year-on-year on a constant currency basis, with variations driven by market dynamics [54][56] Question: Investments in the business and engagement metrics - Management emphasized the importance of lifetime value metrics and the potential for monetization through various channels, including premium subscriptions and advertising [79][82] Question: Impact of podcasting business model changes on advertising growth - Changes in the podcasting model have impacted advertising growth, but underlying growth remains positive [70][72] Question: Key drivers of gross margin expansion after 2025 - Future gross margin expansion is expected to come from advertising growth, marketplace monetization, and new product offerings [73][74]

Financial Data and Key Metrics Changes - In Q2 2025, Spotify's Monthly Active Users (MAU) grew by 18 million to 696 million, exceeding guidance by 7 million [24] - The company added 8 million net subscribers, reaching a total of 276 million, which is a 12% year-on-year increase [24] - Total revenue for the quarter was SEK 4.2 billion, reflecting a 15% year-on-year growth on a constant currency basis [24] - Premium revenue rose 16% year-on-year on a constant currency basis, driven by subscriber growth and Average Revenue Per User (ARPU) gains [25] - Gross margin was reported at 31.5%, expanding approximately 230 basis points year-on-year [26] Business Line Data and Key Metrics Changes - The advertising business delivered currency-neutral growth of 5% year-on-year, with automated sales channels being the largest contributor [25] - The conversion rate from free to paid users continues to improve, indicating healthy growth opportunities even in mature markets [14] - Video content consumption is growing 20 times faster than audio-only consumption since 2024, with over 350 million users streaming video podcasts [18] Market Data and Key Metrics Changes - Spotify holds a 45% market share in music streaming services, excluding China and Russia, which has been steadily growing [18] - The company has seen a 65% increase year-on-year in users streaming video podcasts [18] Company Strategy and Development Direction - Spotify aims to reach a billion subscribers, focusing on creating lifetime value rather than optimizing for short-term performance [10] - The company is recalibrating its advertising strategy to accelerate its contribution to financials, with a focus on improving execution and launching new tools for advertisers [15] - The multi-format strategy is proving effective, as engagement increases with the variety of content offered [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's fundamentals and the expected standout year for 2025, despite some areas not meeting expectations [9] - The company is optimistic about the potential of its advertising business and is working to enhance its execution [15] - Management acknowledged the need for faster progress in the advertising sector and indicated that leadership changes were made to facilitate this [78] Other Important Information - The company ended the quarter with SEK 8.4 billion in cash and short-term investments [28] - Spotify has approved an upsizing of its share repurchase authorization to $2 billion, with about $100 million utilized prior to Q2 [32] Q&A Session All Questions and Answers Question: Update on introducing tiers or a tier for super fans - Spotify is building products for super fans and has rolled out an audiobook add-on subscription in 13 markets, with plans for further expansion [36] Question: Change in gross margin guidance - The company maintains its philosophy on guidance and expects to increase gross margins over time through various monetization strategies [39] Question: Influence of generative AI on productivity and product development - Generative AI is enhancing productivity through faster prototyping and is expected to significantly improve consumer experiences by allowing more interactive engagement [43][48] Question: Capital allocation and share buyback execution - The primary focus remains on growth opportunities, with share buybacks seen as a tool for flexibility [52] Question: Implied FX neutral ARPU trends for Q3 - ARPU is expected to be flat year-on-year on a constant currency basis, with variations driven by market dynamics [55] Question: Investments in the business across verticals - Spotify sees enormous runway for growth across music, video, and audiobooks, with a focus on long-term value creation [60] Question: Pricing strategy in developed markets - The company emphasizes the value-to-price ratio and will adjust pricing when appropriate, maintaining a focus on subscriber growth [98]

Our business delivered healthy results in Q2, led by MAU and Subscriber outperformance, Y/Y profitability improvement and strong Free Cash Flow* generation. The business added 18 million MAU in Q2 vs. guidance for 11 million, while Subscriber net additions of 8 million exceeded guidance by 3 million. Revenue grew 15% Y/Y on a constant currency* basis reflecting Premium and Ad-Supported growth. Outsized currency movements during the quarter impacted reported Revenue by €104 million vs. guidance. Gross Margin ...

Group 1 - The core viewpoint is that Spotify's shares fell approximately 4% after the company reported weaker-than-expected financial results and guidance for the upcoming quarter [1][2] - Spotify's revenues increased by 10% year-over-year, reaching about 3.81 billion euros in the previous year [1] - The company reported a net loss of 86 million euros, translating to a loss of 0.42 euros per share, a significant decline from a net income of 225 million euros or 1.10 euros per share in the same quarter last year [1] Group 2 - The third-quarter revenue guidance is below Wall Street's expectations, with Spotify projecting revenues of 4.2 billion euros compared to the 4.47 billion euros forecasted by analysts [2] - The forecast includes a 490-basis-point headwind attributed to foreign exchange rates [2] - Actual revenue for the last quarter was 4.19 billion euros, which also fell short of the expected 4.26 billion euros [3]

Popular music streaming service Spotify swung to a loss in the second-quarter, missing analysts’ estimates https://t.co/yxjDCeRGuQ ...

Core Viewpoint - The article discusses the controversy surrounding NetEase Cloud Music's handling of the original artist label for songs by Zhang Bicheng and Wang Sulong, highlighting issues of copyright and platform responsibility [2][3][4]. Group 1: Incident Overview - NetEase Cloud Music initially removed the original artist label for three songs by Zhang Bicheng, including "Year Ring," while maintaining the label for Wang Sulong's version [2][3]. - The platform later restored the original artist labels after user complaints and clarified that the removal was due to a system display issue [3][4]. - Legal experts noted that the original artist label lacks a clear definition in Chinese copyright law, and the rights depend on the contractual agreements between the artists and the platform [4][7]. Group 2: Artist Statements and Reactions - Zhang Bicheng's studio stated that she is the only original artist for "Year Ring," which was first released in June 2015, while Wang Sulong's version followed shortly after [4][6]. - Wang Sulong's team announced the decision to retract the song's authorization due to the ongoing dispute over the original artist designation [4][6]. Group 3: Financial Context - NetEase Cloud Music is facing increasing financial pressure, with a reported revenue decline of 8.4% year-on-year in Q1 2025, totaling 1.858 billion yuan, and a gross profit decrease of 11% [14]. - In contrast, Tencent Music reported a revenue increase of 8.7% year-on-year, highlighting the competitive challenges faced by NetEase Cloud Music [14].

Core Insights - Stingray has launched six new free ad-supported streaming television (FAST) channels on VIZIO's WatchFree+, expanding its offerings and providing a wider array of curated music experiences for VIZIO customers [1][4] Company Overview - Stingray is a global leader in music, media, and technology, specializing in TV broadcasting, streaming, radio, business services, and advertising [5] - The company offers a variety of services including audio and video channels, 97 radio stations, subscription video-on-demand content, FAST channels, karaoke products, and music apps [5] - Stingray Business provides commercial solutions in music, in-store advertising, digital signage, and AI-driven consumer insights [5] - Stingray Advertising is North America's largest retail audio advertising network, reaching over 30,000 major retail locations [5] - The company employs close to 1,000 people and reaches 540 million consumers across 160 countries [5] New Channel Offerings - The newly launched channels cater to diverse musical tastes and moods, enhancing the existing lineup on WatchFree+ [2][3] - The existing popular channels include TikTok Radio, Stingray Hot Country, Stingray Greatest Hits, Stingray Hit List, Stingray Classic Rock, Stingray Soul Storm, Qello Concerts by Stingray, Stingray Cozy Café, Stingray Stargaze, ZenLIFE by Stingray, Stingray Naturescape, and Stingray Cityscapes [3] - The new channels include: - Stingray Flashback 70s: Focuses on the music of the 1970s [6] - Stingray Remember the 80s: Highlights the music and culture of the 1980s [6] - Stingray Country Greats: Features classic country music from the 1950s to the mid-1980s [6] - Stingray SPA: Offers instrumental electro-acoustic music for relaxation [6] - Stingray Easy Listening: Provides a selection of instrumental music for leisure [6] - Stingray Nothin' but the 90s: Revisits popular music from the 1990s [6]

Core Insights - Wall Street analysts forecast Spotify (SPOT) will report quarterly earnings of $2.19 per share, reflecting a year-over-year increase of 53.2% [1] - Anticipated revenues for Spotify are projected to be $4.93 billion, showing a 20.3% increase compared to the same quarter last year [1] Earnings Estimates - The current EPS estimate represents a downward revision of 1.4% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions and have a strong correlation with short-term stock performance [3] Key Metrics - Analysts estimate that Total Monthly Active Users (MAUs) will reach 689.11 million, up from 626.00 million in the same quarter last year [5] - Ad-Supported MAUs are projected to be 428.88 million, compared to 393.00 million a year ago [5] - Premium Subscribers are expected to total 273.36 million, an increase from 246.00 million in the previous year [6] Stock Performance - Spotify shares have decreased by 8.4% in the past month, contrasting with the Zacks S&P 500 composite's increase of 5.7% [6] - With a Zacks Rank 3 (Hold), Spotify is expected to closely follow overall market performance in the near term [6]