Spotify Technology SA (NYSE:SPOT)’s impressive ride in the market continues to gather steam on the confirmation of a series of podcast deals. The stock was up by more than 10% as it confirmed a strategic partnership with Warner Bros and DC for the creation and distribution and exclusive narrative podcast. The company has also reached a deal with reality TV star, Kim Kardashian, to create podcasts focused on criminal justice issues.
The podcasts deals all but add to a string of positive developments that have continued to strengthen Spotify sentiments in the market. The stock is already up by more than 80% since the overall market bounced back after the COVID-19-triggered market crash.
Spotify signing a series of high profile moves into the podcast space is the latest catalyst fueling the stock’s price action on catching the attention of traders. It all started with the digital streaming service paying $100 million to bring on board comedian Joe Rogan’s popular podcast platform. The company has already confirmed plans to acquire The Ringer, a sport s and entertainment company, which boasts over 2 podcasts.
The signing of a podcast deal with reality TV Star Kim Kardashian, all but affirms Spotify push into the podcast space. With the deal, the digital music company is poised to gain access to millions of fans, highly needed in the streaming business. The Warner Bros ad DC should also boost Spotify audience base, given the millions of people fond of iconic characters such as Batman, Superman, and Wonder Woman under Warner Bros.
By Building a formidable team around podcasts, Spotify is essentially looking to strengthen its competitive edge when it comes to content streaming. The company is currently entangled in fierce competition with the likes Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN) all investing big on music streaming.
Dubbed as the Netflix Inc. (NASDAQ:NFLX) of music, Spotify has done a pretty excellent job in safeguarding its market share in the digital music space. Investments have all but strengthened the company’s competitive edge, likely to drive the bottom line and shareholder value. Likewise, the stock looks set to continue edging higher as Spotify moves to capture opportunities in the digital music space.