Spotify Technology (SPOT) Morgan Stanley 25th European Technology, Media & Telecom Conference summary

Leadership and organizational changes

• Transition of CEO to Executive Chairman with co-CEOs taking over, maintaining operational continuity and strategic involvement from the former CEO.

• Co-CEOs have long-standing experience and have already been managing business and tech sides, ensuring a smooth transition.

• The leadership change is seen as a natural evolution, leveraging proven internal talent.

Growth, user engagement, and monetization

• User base has grown by nearly 300 million since 2022, with 100 million new subscribers, and continued strong engagement metrics.

• Engagement, measured in hours and days, is rising, especially as users adopt multiple content verticals like podcasts and audiobooks.

• Multi-vertical engagement increases loyalty and reduces churn, supporting growth and retention.

• Price increases across 150+ countries have not led to material churn, reflecting strong value-to-price perception.

• Future pricing decisions will be more market-specific, leveraging strong pricing power and product scalability.

Product innovation and vertical expansion

• Ongoing expansion into new verticals, with audiobooks and Audiobook+ showing strong uptake and further international rollout planned.

• Tiering and segmentation strategies are being developed, with more differentiated offerings expected in the next 12 months.

• Free tier remains a critical funnel, with 60% of subscribers originating from it, supporting both user growth and advertising.