BUZZ-Spotify's possible launch of 'Superfan tier' to benefit co more than music labels, HSBC says

Reuters
02-26
BUZZ-Spotify's possible launch of 'Superfan tier' to benefit co more than music labels, HSBC says

** Spotify's SPOT.N potential launch of a "Superfan tier" is likely to benefit the streaming company more than the music labels, HSBC says

** HSBC raises PT to $700 from $665

** Financial dynamics are unclear if the new package includes early access to concert tickets as they favor artists, with record labels typically not sharing in ticket sales - HSBC

** Early access to concert tickets might be the most important factor in consumer uptake for fans of megastars, such as Taylor Swift, where tours can sell out quickly - brokerage

** Ticketmaster parent Live Nation Entertainment LYV.N has indicated talks with SPOT, Apple AAPL.O, Amazon.com AMZN.O regarding super-premium tiers last week

** "Our survey provides some support for price increases, this only holds if tied to improved audio packages" - HSBC

** Peers such as Apple Music and Amazon Music already offer high-quality audio in basic packages

** SPOT shares up 0.8% at $593.52 premarket

(Reporting by Jaspreet Singh in Bengaluru)

((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))

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