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Oppenheimer upgrades Spotify, sees 'longest runway' to add users through 2030

Oppenheimer upgrades Spotify, sees 'longest runway' to add users through 2030

CNBC2 days ago
Spotify has the ability to add more global users than Meta Platforms, YouTube, Amazon Prime or Netflix, and to increase revenue by 16% annually through 2030, according to Oppenheimer. Analyst Jason Helfstein upgraded the music streaming platform to outperform from perform and set an $800 price target on the stock, which implies shares can gain nearly 19%. "We believe that SPOT will benefit from the secular tailwind of growing digital audio streaming adoption and that the company's subscription economics are better than most believe," Helfstein wrote in a report on Wednesday. Shares of Spotify have rallied 51% so far this year. The Luxembourg-based company earlier this year recorded its first full year of profitability when it released fourth-quarter results. First quarter results in April showed 12% year-over-year growth in subscribers to 268 million, and a 4 percentage point increase in gross profit margin to 31.6%. Looking ahead, Helfstein said Spotify can make more money from new and existing users. Compound annual growth in revenue through 2030 is expected to reach 16%, boosted by 9% annual increases in subscribers and average revenue per subscriber rising by 21%, he said. "For years SPOT has meaningfully under-monetized its free tier, using this as a conversion funnel, as the company tries to scale advertising," the analyst said. SPOT 1Y mountain Spotify stock over the past year. Helfstein cited several tailwinds for his upgrade, including expectations that: Spotify boasts the "longest runway" among large-cap internet stocks to increase its number of monthly active users (MAU), and capture a majority of listeners that are abandoning terrestrial radio (Spotify in the fourth quarter recorded 675 million MAUs, while analysts polled by StreetAccount expected 664.3 million.) A widely expected, higher-priced 'Superfan' tier will drive revenue Spotify will likely monetize its free/lowest fee over time, unlocking a multi-billion dollar revenue opportunity Spotify is already benefiting from conversion improvements from App Store changes, after a recent court ruling against Apple reduced friction for iOS "free-to-paid" conversion
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Astronomer hires Gwyneth Paltrow with a wink after 'kiss cam' viral video
Astronomer hires Gwyneth Paltrow with a wink after 'kiss cam' viral video

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time41 minutes ago

  • CNBC

Astronomer hires Gwyneth Paltrow with a wink after 'kiss cam' viral video

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AI-fueled crypto scams are booming, up 456% — and no one is safe, expert warns
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timean hour ago

  • New York Post

AI-fueled crypto scams are booming, up 456% — and no one is safe, expert warns

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Would you ever swap human artists for AI in your playlist
Would you ever swap human artists for AI in your playlist

Fox News

timean hour ago

  • Fox News

Would you ever swap human artists for AI in your playlist

Psychedelic rock band The Velvet Sundown has over a million monthly listeners on Spotify and earns thousands of dollars every month. However, the catch is that it's not a traditional band at all. It's mostly made by artificial intelligence. Their Spotify bio confirms that the group is a synthetic music project, guided by human creative direction but composed, voiced, and visualized using AI. This is a sign of where music may be headed. This revelation has sparked heated debate within the music industry. Some people see it as an exciting new frontier for creativity. Others see it as a threat to everything music has traditionally stood for: originality, emotion, and human expression. Sign up for my FREE CyberGuy ReportGet my best tech tips, urgent security alerts, and exclusive deals delivered straight to your inbox. Plus, you'll get instant access to my Ultimate Scam Survival Guide - free when you join my Platforms like Suno and Udio now allow users to generate original songs with just a few prompts. These tools handle everything, vocals, instruments, structure, with startling sophistication. The Velvet Sundown reportedly earned more than $34,000 in a single month from streaming platforms. And it's not alone. Other acts, such as Aventhis, a "dark country" musician with over 600,000 monthly listeners, are also believed to be powered by AI-generated content. This isn't happening in a studio with a team of producers. It's often just one person inputting text and outputting tracks. The barrier to entry is nearly gone. With a laptop and internet connection, anyone can create and distribute AI-generated songs on a massive scale. Major record labels are pushing back. Universal Music Group, Sony Music, and Warner Records have filed lawsuits against AI music platforms, accusing them of using copyrighted material without permission during the training process. At the same time, music creators and advocacy groups are demanding regulation. They want AI-generated tracks to be clearly labeled. They're also calling for updated copyright protections to prevent the misuse of human-created work during AI training. Streaming platforms are starting to acknowledge the issue. Deezer revealed that nearly one in five new uploads are entirely AI-generated. This trend is growing and reshaping the very idea of what it means to be a musician today. For emerging musicians, the rise of AI is deeply frustrating. Tilly Louise, an alternative pop artist based in the UK, has amassed millions of streams but still works a full-time job because her music doesn't generate enough income. Watching an AI-generated band pull in massive streaming numbers feels like being pushed aside by something that isn't even real. She's not alone in this sentiment. Many artists feel overwhelmed by an industry that increasingly rewards volume and virality over authenticity and hard work. Some critics warn that AI-generated art dilutes genuine human expression, believing it floods the internet with hollow content, making it harder for listeners to form a genuine connection through music. Not everyone sees AI as the enemy. Grammy-winning producer Timbaland recently launched a venture called Stage Zero, which plans to spotlight AI-generated pop stars. Music schools are also adapting. Educators are now teaching students how to utilize AI tools to enhance their creative process, rather than avoiding them. Still, even those who are optimistic about the technology admit that it could completely upend the music business. As AI-generated content becomes increasingly easy to produce, the competition for listener attention and streaming dollars will intensify. Nobody knows exactly what the future will look like, but the direction is clear: AI is no longer on the fringes. It's already in the mainstream. AI is no longer just supporting music creation; it is actively creating music that listeners are streaming and enjoying. Whether it's rock, country, or pop, AI-generated songs are showing up in more playlists every day. The real question is not whether AI music is good enough. It's whether listeners will care that it wasn't made by a human. As technology improves and the lines between human and machine blur, that question will only get harder to answer. Does it matter who made the music, as long as it sounds good? Let us know by writing us at Sign up for my FREE CyberGuy ReportGet my best tech tips, urgent security alerts, and exclusive deals delivered straight to your inbox. Plus, you'll get instant access to my Ultimate Scam Survival Guide - free when you join my Copyright 2025 All rights reserved.

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