Audio streaming service provider Spotify Technology SA (NYSE:SPOT) shares are trading higher on Thursday. The company launched the Spotify Partner Program.
This new monetization initiative is available in the U.S., U.K., Canada, and Australia and aims to help creators expand their audiences and generate sustainable revenue streams.
The program offers creators access to multiple revenue opportunities, including audience-driven payouts from Spotify Premium video engagement and monetization through ads on Spotify Free and other podcast platforms.
The dual revenue model allows creators more control over their earnings while enhancing the listener experience.
Premium users can enjoy an uninterrupted viewing experience with no third-party ads in video podcasts, though creators' baked-in sponsorships remain in episodes.
Since its announcement on November 13, 2024, over 65% of eligible shows and networks have enrolled in the program.
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Spotify continues to invest in video and discovery features to enhance the platform. The introduction of short-form podcast clips, unveiled at the Now Playing event, has led to a 33% increase in converting browsers into engaged listeners.
The company has a global reach of over 640 million users and 250 million subscribers. In November, it reported third-quarter sales of $3.99 billion (versus $3.65 billion a year ago), which missed the analyst consensus estimate of $4.02 billion. EPS of $1.46 missed the analyst consensus estimate of $1.76.
The company reported monthly average user net additions of 14 million. Premium subscribers grew 12% to 252 million.
Investors can gain exposure to Spotify through Global X Social Media ETF (NASDAQ:SOCL) and First Trust International Equity Opportunities ETF (NASDAQ:FPXI).
Price Action: SPOT shares are trading higher by 1.56% at $454.35 at last check on Thursday.
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