Strategic Partnership between Spotify and Netflix

On October 22, 2025, Spotify announced that it has moved some of its video podcast content available on YouTube, including The Ringer and Bill Simmons Podcast, to Netflix. The aim of this collaboration is to enhance accessibility between the two platforms and strengthen the partnership.

This move is expected to contribute to audience growth and platform differentiation. Netflix aims to retain its subscribers with new content, while Spotify plans to reduce direct competition with YouTube by increasing the visibility of its content creators.

How might Spotify's new Netflix content partnership affect the company’s investment narrative and audience expansion efforts? To become a shareholder in Spotify, one must believe in the company’s ability to broaden its global audience and diversify revenue streams, particularly in new content areas such as podcasts and video.

While the transfer of selected video podcasts to Netflix may seem likely to enhance content creators' visibility and bolster differentiation, it is not expected to have a significant impact on Spotify’s largest short-term growth driver, accelerating advertising revenue growth. Additionally, it is not anticipated to meaningfully reduce fundamental risks such as high music licensing costs and margin pressures.

Recent statements indicate that Spotify's ongoing investments and partnerships with major music groups are quite significant in the areas of generative AI and responsible content development. These initiatives focus on copyright protection, artist empowerment, and innovation, potentially providing long-term operational leverage through deeper platform engagement and new user experiences.

However, alongside audience expansion opportunities, there are margin risks that investors should pay attention to. Spotify Technology's projections anticipate revenues of €23.8 billion and earnings of €3.4 billion by 2028. This requires an annual revenue growth of 12.8% and an earnings increase from €806 million to €2.6 billion.

Spotify Technology's forecasts imply a fair value of $736.43, representing a 14% increase from its current price. However, the Simply Wall St community of 23 members presents a wide range of fair value estimates for Spotify, ranging from $299.68 to $865.78. Ongoing margin pressures and content costs raise serious concerns about future profitability.

Our research on Spotify Technology highlights three main rewards that may impact your investment decisions, making it an excellent starting point for evaluating the company. Investors are paying attention to those who act quickly to capitalize on their target stocks. The best AI stocks may extend beyond giants like Nvidia and Microsoft. Discover 27 smaller AI-focused companies with growth potential through early-stage innovations.

Our comprehensive fundamental analysis report on Spotify Technology provides an easy visual to assess its financial health in real-time.