>> "BLOOMBERG TECH" IS LIVE FROM COAST-TO-COAST WITH CAROLINE HYDE IN NEW YORK AND ED LUDLOW IN SAN FRANCISCO. ED: COMING UP, SPOTIFY ADDED A RECORD NUMBER OF USERS LAST QUARTER THANKS TO ITS END OF YEAR WRAPPED CAMPAIGN. CAROLINE: PARAMOUNT ENHANCES ITS BID FOR WARNER BROS.DISCOVERY, OFFERING BILLING TO COVER DEBT REFINANCING AND TAKING FEES. ED: RUNWAY CEO CRISTOBAL VALENZUELA TALKS ABOUT THE NEW FUNDING ROUND THAT VALUES THE COMPANY AT FIVE POINT $3 BILLION. CAROLINE: ON THE BENCHMARKS, NOTHING THAT EXCI ...

Group 1: Spotify - Spotify added a record number of users last quarter, reaching a total of 751 million subscribers, with shares surging by 20%, marking its biggest jump in seven years [3][4][30] - The end-of-year Wrapped campaign significantly contributed to user growth, as it is an annual interactive marketing campaign that encourages users to share their listening habits [31][32] - Despite the growth in users, advertising revenue has declined, raising concerns about the company's ability to monetize its ad-supported users effectively [32] Group 2: Paramount and Warner Bros. - Paramount is enhancing its bid for Warner Bros. by offering to cover a $2.8 billion termination fee that Warner Bros. would owe Netflix if they terminate their deal [33][34] - The bid aims to address Warner Bros.' concerns about refinancing debt and the financial implications of switching from Netflix to Paramount [35][36] - Paramount has not increased its offer price of $30 per share, but the added financial assurances may improve the bid's attractiveness to Warner Bros. [36][39] Group 3: Bond Market and AI Investments - Alphabet has raised $32 billion in the debt markets, with a recent bond offering of $11 billion being oversubscribed nearly 10 times, indicating strong investor confidence [5][6][9] - The issuance of a 100-year bond reflects the market's belief in Alphabet's long-term stability and growth potential, despite concerns about the AI bubble [7][10] - Analysts project over $4 trillion in cumulative hyperscaler spending through 2030, highlighting the significant investment in AI infrastructure [8][24] Group 4: Software Sector - The software sector is experiencing volatility due to fears surrounding AI, but some analysts believe these fears are overstated, suggesting that enterprise software will remain relevant [13][15] - Companies in the software space are advised to adapt to AI integration rather than fear obsolescence, as the transition will take time [17][19] - There are pockets of opportunity within the software sector, particularly in cybersecurity and AI infrastructure, as companies look to embed AI into their solutions [19][20][24]

Core Insights - Spotify Technology S.A. reported exceptional fourth-quarter fiscal 2025 earnings, leading to an 18% surge in its stock price, surpassing $489 per share [1] Financial Performance - Spotify's Q4 2025 earnings exceeded both analyst and company expectations, with an EPS of €4.43 (approximately $5.27), surpassing the expected €2.74 (about $3.26) by €1.69 [3][7] - The company reported total revenue of €4.531 billion (around $5.392 billion), slightly above the anticipated €4.52 billion, marking a 10% year-over-year increase on a constant currency basis [3][7] User Metrics - Monthly Active Users (MAUs) reached 751 million, an 11% increase year over year, exceeding the expected 745 million [4][7] - Premium subscribers totaled 290 million, reflecting a 10% year-over-year growth, also surpassing the company's initial forecast [4][5][7] Marketing Success - The growth in premium subscribers was partly driven by the successful year-end Wrapped campaign, which saw over 300 million users engage, a 20% increase, and 630 million shares on social media, up 42% [5][6]

Core Insights - Spotify's ad-supported user base reached 476 million, exceeding the expected 468.9 million [1] - Monthly active users increased by 11% year-over-year to 751 million, surpassing the 744.7 million forecast [1] - Paid subscribers rose by 10% year-over-year to 290 million [1] User Growth and Features - Growth in user additions was attributed to expansion in Latin America, Europe, and improvements in the mobile free tier [1] - The company launched audiobooks in new markets and introduced music videos for premium users, along with enhanced AI tools in Q4 [2] Financial Performance - Net income increased to 1.17 billion euros, or 4.43 euros per share, compared to 367 million euros, or 1.76 euros per share, in the previous year [3] - For the current quarter, Spotify anticipates revenue of 4.5 billion euros, which is below the 4.58 billion euros estimate, impacted by a 670 basis point headwind from foreign exchange rates [4] Future Projections - Spotify expects to grow monthly active users by 8 million to reach 759 million, exceeding the 752.4 million estimate [4] - Total premium subscribers are projected to reach 293 million [4]

Q4 2025 Update | Executive Summary | p.03 | | --- | --- | | Key Highlights | p.04 | | Financial Summary | p.06 | | MAUs & Subscribers | p.13 | | Product & Platform | p.16 | | Outlook | p.19 | Financial Statements p.22 2 Executive Summary We finished 2025 with strong performance, as all Q4 KPIs met or exceeded guidance to deliver strong Free Cash Flow*. The business added a record 38 million MAU vs. guidance for 32 million, while Subscriber net additions of 9 million exceeded guidance by 1 million. Revenue w ...

Core Insights - Spotify Technology S.A. is set to introduce music videos for premium subscribers in the US and Canada by the end of December, aiming to compete with YouTube for market share [1][3] - The addition of video content is expected to enhance user engagement and attract more advertisers, following a beta launch in nearly 100 markets in 2024 [2] - The initial video catalog will include content from popular artists, and data shows that users are significantly more likely to engage with songs that have music videos [3] Company Developments - Spotify's Wrapped feature engaged over 200 million users within 24 hours, marking a 19% year-over-year increase in user engagement [3] - The company plans to increase subscription prices in the US in the first quarter of 2026, following a price hike for premium plans in over 150 markets [3] - Spotify is recognized as a leading audio streaming subscription service, providing access to songs, podcasts, and audiobooks [4]

Music Industry Trends - The music industry is tracking which albums are popular on Spotify [1] - The industry is encouraging predictions about Spotify Wrapped results [1]

Core Insights - Microsoft is expected to release the Xbox Year in Review 2025 soon, likely providing gamers with insights into their gaming habits over the past year [3][5]. Release Timing - The exact release date for Xbox Year in Review 2025 is not confirmed, but predictions suggest it may be available on December 10, 2025, avoiding a clash with PlayStation Wrap-Up [5][7]. - Previous editions were released on December 4, 2024, and December 12, 2023, indicating a trend of late-year releases [6]. Access and Features - Xbox Year in Review 2025 will likely be accessible via the dedicated subsite xbox.com/year-in-review, where users can log in with their Xbox accounts [8]. - Expected features include personalized statistics such as most-played games, total achievements, monthly stats, and possibly a breakdown of playtime across different platforms [9][10]. Availability Duration - The 2024 edition was available until January 31, 2025, and it is predicted that the 2025 edition will be available until January 31, 2026 [11].

Generational Trends - Spotify Wrapped 表明，千禧一代对 Fleetwood Mac 的喜爱程度与他们的退休年龄相符 [1]

Music Streaming Industry Trends - Spotify released its year-end listening roundups, providing customized reports for each user [1] - Spotify's "listening age" feature calculates a user's musical taste compared to others in their age group based on the release years of the tracks they listen to most [3] Artist Performance - Bad Bunny was the most played artist globally with 8 billion streams [2] - Bad Bunny's streams were driven in part by his sixth studio album and history making residency in Puerto Rico [2] - Taylor Swift is still number one in the US [2]