Spotify jumps 5% on plans to launch a new paid tier 🔊
Harry, Meghan and Hi-Fi: In the same week that Spotify executive Bill Simmons called Harry & Meghan “f***ing grifters”, its share price jumped 5% thanks to a new platinum tier the company is planning to release involving Hi-Fi music.
“Supremium”: The new tier, dubbed “supremium”, will be the company's most expensive plan at around the $19.99 mark. It’s expected to launch this year in non-US markets first, according to Bloomberg News.
A chance for more revenue: Hi-Fi music, headphone tuners, and audio insights are just some expected features. Investors have reason to be excited as a more expensive tier means more potential revenue for Spotify. Although, we don’t expect Harry and Meghan to subscribe anytime soon.
Warner Bros crashes 12% thanks to The Flash’s flop ⚡️
A flash in the pan: Warner Bros’ The Flash was a highly anticipated film, expecting to cash in $80 million during its release last weekend. Did it meet expectations? Absolutely not. It brought in a rather underwhelming $55 million.
A vulnerable industry: The film industry is truly like no other. One 2-hour film can affect the financial future of a Fortune 500 company, so it’s imperative that films perform well. Unfortunately, The Flash featured distasteful cameos, shocking CGI and failed to address alleged crimes associated with the film’s star actor, Ezra Miller.
Flash forward: But it might not be all bad news for investors. Going forward, it seems unlikely this Flash will remain in DC’s new universe. The company is prioritising more promising characters such as Batman, Superman and Wonder Woman.
Alibaba names new CEO as stock drops 3% 📉
Passing on the torch: Alibaba, known as the ‘Amazon of China’, announced CEO Daniel Zhang was stepping down after eight years and will be replaced by Eddie Wu, one of Alibaba’s co-founders.
It’s all about the cloud and AI: The move will free Zhang to focus on the company’s cloud intelligence business, which since the emergence of AI, has become a main priority for the company.
Dreams of going public: In fact, it’s such a priority for the company that it wants the cloud unit to list as its own public company within the next 12 months. This is all part of Alibaba’s ambitious plans to restructure its business into six individual sub companies.
What have we learned this week? 🤓
Subscription services love releasing new tiers: Netflix has shown it’s possible to integrate new tiers into its paid plans. And it seems other companies are taking note, with Spotify being the most recent to follow suit.
The film industry is vulnerable: An entertainment company’s outlook can change in a matter of hours, depending on the audience’s reaction.
Reshuffles in management can harm investor confidence: Are investors losing confidence with yet another major change in the company’s operations?
*Figures correct as of June 21st 2023.
Past performance does not guarantee future results. Capital at risk when investing.
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