The Intrinsic Value Podcast - The Investor’s Podcast Network

MI362: The Story Of Spotify And Valuation w/ Shawn O'Malley


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In today’s episode, Shawn O’Malley (@Shawn_OMalley_) tells the story of Spotify, the music and podcast streaming app that hundreds of millions of people worldwide use.

You’ll learn about how streaming saved the recorded music industry, Spotify’s origins, the economics of music streaming, Spotify’s business model, risks, and future outlook, as well as Shawn’s valuation of the stock and how you can create your own, plus so much more!


IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

01:45 - How the music industry was consumed by piracy and how streaming changed that.

02:56 - How Spotify disrupted the iTunes Store and Apple.

05:09 - Why Spotify’s service is so sticky.

05:23 - What are the keys to Spotify’s business model and future growth.

17:15 - What challenges Spotify faces from its competition.

20:42 - How Spotify transitioned from just music to being a broader audio streaming service.

24:21 - How Spotify can improve its profit margins.

27:50 - How music royalties work and how Spotify’s relationships with music labels works.

40:42 - What it looks like to build a financial model for big tech companies.

32:44 - Which metrics Spotify must focus on to justify its current valuation.


*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.


BOOKS AND RESOURCES

  • Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
  • Check out The Spotify Play: How CEO and Founder Daniel Ek Beat Apple, Google, and Amazon in the Race for Audio Dominance by Sven Carlsson and Jonas Leijonhufvud.
  • Follow Sleepwell Capital for insights on the music industry.
  • Music Streaming Royalties 101 article.
  • Check out the books mentioned in the podcast here.
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    • SPONSORS

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