Spotify's share price reached into the stratosphere on Tuesday following an announcement of a new agreement with a communications giant, but the streaming platform’s stock performance might have had more to do with an approving nod from the biggest name in business news.
Starting Tuesday, Spotify became available on Comcast's cable TV service X1, and Flex, a streaming portal that hosts apps such as Netflix and Hulu. By the numbers, the agreement -- it's not a deal and hardly a partnership -- is impressive: between residential broadband and cable, Comcast has 29.5 million accounts, according to the company’s latest earnings statement.
But investors could have been more moved by the comments on Monday by Jim Cramer on his CNBC show Mad Money. Cramer sees a comparison in Spotify's original podcast content to Netflix’s genius move nearly a decade ago to augment its licensed catalog by self-producing its own movies and series. A person had multiple options for renting a movie but had to have Netflix to binge-watch an original show like House of Cards. Now "that the market’s finally bought into their podcasting strategy — which is a great one — what matters here is subscriber growth," he said.