SPOT (Spotify Technology) Moat Score : 6/10 (As of Jul. 05, 2025)

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What is Spotify Technology Moat Score?

Spotify Technology has the Moat Score of 6, which implies that the company might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Spotify Technology has Narrow Moat: Spotify has a strong narrow moat with significant brand strength, network effects, and customer loyalty. However, intense competition and limited pricing power prevent it from achieving a wide moat status.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Spotify Technology might have Narrow Moat - Strong narrow moat, clearly distinguishable but not wide.

Competitive Comparison of Spotify Technology's Moat Score

For the Internet Content & Information subindustry, Spotify Technology's Moat Score, along with its competitors' market caps and Moat Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Spotify Technology's Moat Score Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Spotify Technology's Moat Score distribution charts can be found below:

* The bar in red indicates where Spotify Technology's Moat Score falls into.

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Spotify Technology (NYSE:SPOT) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score	Moat Level
10	Wide Moat - Exceptionally dominant and durable wide moat
8 - 9	Wide Moat - Clear and robust wide moat
7	Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6	Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5	Narrow Moat - Solid narrow moat
4	Narrow Moat - Discernible but modest moat
1 - 3	No Moat - Very weak/transient advantages
0	No Moat - No discernible moat

Spotify Technology Moat Score Related Terms

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Spotify Technology Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Spotify Technology SA (NYSE:SPOT) » Definitions » Moat Score

Comparable Companies

Traded in Other Exchanges

SPOT N:Mexico 1SPOT:Italy 0SPT:UK 639:Germany S1PO34:Brazil SPOT:Austria

Address

Regeringsgatan 19, Stockholm, SWE, 111 53

Website

https://www.spotify.com

Spotify is the leading global music streaming service provider, with nearly 700 million monthly active users and over 250 million paying subscribers, with the latter constituting the firm's premium segment. Most of the firm's revenue and nearly all its gross profit come from the subscribers, who pay a monthly fee to access a music library that consists of most of the most popular songs ever recorded, including all from the major record labels. The firm also sells separate audiobook subscriptions and integrates podcasts within its standard music app. Podcast content is not exclusive and is typically free to access on other platforms. Ad-supported users can access a similar music catalog but cannot customize a similar on-demand experience.