Audio streaming giant Spotify (SPOT) has announced that it is expanding the music videos available to its premium subscribers in the U.S. and Canada.
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The Swedish company says that video content offers a more immersive and engaging experience than audio alone, and that it hopes more videos will attract new users and advertisers to its platform that’s known for its songs and podcasts.
The expanded music video access also comes as Spotify challenges Alphabet-owned (GOOGL) YouTube for market share. Following a beta launch in nearly 100 markets, the music videos are now being offered to all of Spotify’s premium subscribers in the U.S. and Canada.
Spotify’s Diverse Offerings
Management at Spotify says that the addition of music videos will help to distinguish it from the music streaming offered by competitors such as Apple (AAPL) and Amazon (AMZN). Spotify’s video catalog includes content from Ariana Grande, Olivia Dean, BABYMONSTER, Addison Rae, and others. More videos will be added by Spotify at a steady clip, said the company.
“We’ve seen that when fans discover a track with a music video on Spotify, they’re 34% more likely to stream it again and 24% more likely to save or share it in the following week,” said the company in a news release. Media reports say that Spotify plans to raise its U.S. subscription prices in early 2026.
Is SPOT Stock a Buy?
Spotify stock has a consensus Moderate Buy rating among 26 Wall Street analysts. That rating is based on 18 Buy and eight Hold recommendations issued in the last three months. The average SPOT price target of $777.67 implies 31.02% upside from current levels.
