Neil Cybart 6/21/23 Neil Cybart 6/21/23

Spotify Earnings, Spotify Planning Supremium Tier, Warner Bros. Discovery Looking to License HBO Content to Netflix

Happy Wednesday. For today's update, we will take a spin through content streaming land.

Spotify Earnings

Back at the end of April, Spotify reported 1Q23 earnings.

Spotify management's narrative changing yet again. There is increased emphasis on paid subscriber growth and the impact it will have (eventually) on profitability. Although Spotify has never been shy talking about user growth since the company needs as many users as possible for its advertising ambition to materialize, premium subscriptions didn't receive as much attention in recent years.

As for what is driving the narrative change, Spotify’s premium sub growth numbers continue to be very strong. The company added 5M premium subs last quarter (bringing the total to 210M). Spotify earns most of its revenue (89%) from premium subscriptions.

Here is my go-to quarterly exhibit tracking Spotify subscriber trends:

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Neil Cybart 2/1/23 Neil Cybart 2/1/23

Final Thoughts Heading Into Apple Earnings, Spotify Earnings (Daily Update)

Hello everyone. On Monday, we went over my expectations heading into Apple’s earnings tomorrow. We also talked briefly about my thoughts on what Apple may say about FY2Q23. Yesterday’s update included my granular financial estimates and updated Apple earnings model. One item that has been on my mind is that noise found with tomorrow’s earnings may drown out the numbers and topics that should grab attention. In today’s update, we go over those key earnings items to keep an eye on tomorrow. The discussion then turns to Spotify’s 4Q22 earnings.

Final Thoughts Heading Into Apple Earnings

One item that has been on my mind is that noise found with tomorrow’s earnings may drown out the numbers and topics that should grab attention.

iPhone strength. As alluded to in yesterday's update, earnings recap headlines will probably be focused on

An Above Avalon membership is required to continue reading this update. Members can read the full update here . An audio version of this update is available to members who have the podcast add-on attached to their membership. More information about the podcast add-on is found here.