Spotify CEO Daniel Eck has asked to keep his company away from Netflix, telling investors the two are “completely different businesses” after the recent crash in the share price of the video streaming service cut Spotify’s value by a fifth.
“I think a lot of people group us and Netflix together.
“With Spotify we are a platform, Netflix is not. With Spotify we have a free service, Netflix does not… It is a completely different business,” he added.
Shares in the music streaming service have fallen nearly 20 percent since Netflix unveiled Subscriber growth haltedRaises concerns about the business model as inflation rises.
Although Ek is haughty from comparisons with Netflix, Spotify has previously tried to convince investors that it can emulate Netflix, which has been one of the most successful stocks of recent years.
Spotify hired Barry McCarthy, the former VP of finance at Netflix, to lead it through public listing. He often did Compare Spotify to NetflixTells investors that the music streaming group “reminds me of my first 10 years on Netflix” Compares the Spotify podcast to NetflixThe initial transition of video to stream.
Spotify shares have fallen more than 50% this year. The company has been hit by macroeconomic concerns regarding inflation and the war in Ukraine, as well as a reassessment of streaming as a business model. The group’s market capitalization shrank to $ 21 billion, a third of its size during last year’s epidemic.
However, CFO Paul Fogel said he saw no indication that the macro environment was affecting its numbers. “We definitely think Spotify is a product that people want to continue to own,” he said. You will always be there. “
The company added 2 million subscribers in the first three months of the year, even as it lost customers after a shutdown in Russia and despite protests against the service on podcaster Joe Rogen and misinformation about corona vaccines.
The group reached 182 million paid subscribers and a total of 422 million users by the end of March. During the quarter, Spotify stopped charging subscribers in Russia because of its attack on Ukraine, which the company warned last month would cost it about 1.5 million subscribers.
Spotify predicted it would add 5 million subscribers in the three months to the end of June, accelerating again despite another expected loss of 600,000 subscribers in Russia. The company’s revenue in the first quarter increased by 24% compared to the same period last year to 2.7 billion euros.
Shares of Spotify are down more than 12% by mid-afternoon in New York.
Spotify chief distances music streaming group from Netflix Source link Spotify chief distances music streaming group from Netflix