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Spotify’s shares were up nearly 4% in afternoon trading. The stock has risen around 28% so far this year.
Spotify said the initial video catalog will include content from artists such as Ariana Grande, Olivia Dean, BABYMONSTER and Addison Rae.
“We’ve seen that when fans discover a track with a music video on Spotify, they’re 34% more likely to stream it again and 24% more likely to save or share it in the following week,” the company said.
Music videos will be available to all premium subscribers in the U.S. and Canada by the end of the month.
Spotify recently unveiled Wrapped — its year-end roundup of users’ listening habits — that gained more than 200 million engaged users within around 24 hours, marking a 19% increase from a year earlier.
“Engagement is a very important part for sort of our measurement…sometimes, it could be an even more important than the number of users,” CFO Christian Luiga said last month at the Morgan Stanley tech conference.
Reporting by Jaspreet Singh in Bengaluru; Editing by Vijay Kishore
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