LONDON, July 25 (Reuters Breakingviews) - Spotify (SPOT.N) is caught between the expectations of investors and major music labels.
One bullish argument for Spotify’s stock is that higher prices will mean higher margins over time.
First, some of Spotify’s customers pay annually, which means the price hike might take a while to come through.
He’s locked in a long-term standoff with major labels like Universal Music Group (UMG.AS), which currently grab the overwhelming majority of Spotify’s revenue.
In other words, Spotify’s future may be rosier than Ek is willing to let on.
Persons:
Daniel Ek, Ek, coy, He’s, Karen Kwok, Liam Proud, Oliver Taslic
Organizations:
Reuters, Spotify, Universal Music, Twitter, Thales, Thomson
Locations:
Spain