Spotify’s Road to $100B and Profitability

This podcast episode analyzes Spotify's remarkable turnaround in 2024, contrasting its current success with its low valuation in 2022. Host Dan Runcie interviews Sleepwell Capital, an investor in Spotify and Universal Music Group, who attributes Spotify's success to factors like optimal product timing, securing label support, and strong founder-led management. The discussion covers Spotify's pricing strategies, podcasting investments, and competition with YouTube Music, highlighting the ongoing debate about the free tier's future and the potential for a "super fan" tier. Sleepwell Capital expresses optimism about Spotify's long-term growth, despite concerns about its high PE ratio, and suggests that the company's market capitalization may soon surpass that of the three major record labels combined. The interview concludes with a discussion of the evolving relationship between streaming services and the music industry.