Here's How Spotify (SPOT) Plans to Take on YouTube
Spotify plans to add music videos to its app, allowing users to switch between audio and video versions of songs. This move aims to compete with YouTube and TikTok. Spotify secured licensing agreements for audiovisual content and partnered with Netflix for video podcasts. Analysts have a Moderate Buy consensus on SPOT stock, with a price target implying 39.6% upside potential.
Music-streaming platform Spotify (SPOT) is getting ready to add music videos to its app, according to The Verge. Indeed, users will be able to switch between audio and video versions of popular songs, with the update expected to arrive later this month. As a result, this move suggests that Spotify is pushing to compete more directly with platforms like TikTok and YouTube (GOOGL).
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Notably, a job posting on Spotify's website also hinted at this shift, as it described the company as transitioning "from an audio-first platform" to also becoming a "world-class video service." This step into video comes after Spotify secured licensing agreements earlier this fall with major record labels and the National Music Publishers' Association.
These deals included rights for audiovisual content, which now allow Spotify to legally stream full music videos. To support this expansion into video service, Spotify also teamed up with Netflix (NFLX) in October. The partnership will bring select video podcasts to Netflix's platform in the U.S. starting in early 2026, with additional countries added later.
Is SPOT Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SPOT stock based on 18 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPOT price target of $777.67 per share implies 39.6% upside potential.
