What happened
Shares of Spotify Technology (SPOT 2.42%) gained 19.3% in value last month, according to data provided by S&P Global Market Intelligence.
Spotify stock had an up-and-down year following its IPO in April. The shares were up as high as 40% before spiraling downward through the end of 2018. Spotify hasn't reported a profit, which likely contributed to the volatility, since investors are still uncertain how profitable the company will be down the road.
However, the stock rebounded along with the broader market last month, which was buoyed by news that Spotify had reached a distribution deal with India's most popular music and film company, T-Series.
IMAGE SOURCE: SPOTIFY.
So what
The T-Series deal allows Spotify users all over the world to access popular Indian music going back 30 years, including Bollywood and popular movie soundtracks, in addition to emerging artists in India.
Spotify is the leading music-streaming service in the world, with more than 200 million active users worldwide. The streaming service has made it a priority to partner with various companies across the music-streaming ecosystem, including makers of smart-home devices and even TV streaming services. This makes it easier for Spotify users to more conveniently integrate their subscription with other devices or other streaming services they use, which helps to keep subscriber churn down.
Check out the latest Spotify earnings call transcript.
Now what
There are more than 30 million people of Indian origin living in some of Spotify's biggest markets, including the U.S., Mexico, Brazil, the U.K., and Germany. Plus, more than 4 million current users already listen to Indian music on Spotify.
By integrating T-Series content, Spotify is once again making its service nearly impossible for music lovers to live without. Most importantly, the deal positions Spotify to grow in mid-tier markets, such as Mexico and Germany, that are expected to drive most of the subscriber growth in the streaming market in the short term.
