Spotify's Virtuous Cycle Is Just Getting Started

Spotify (NYSE: SPOT) CEO Daniel Ek described a virtuous cycle around podcasts on several occasions during the company's second-quarter earnings call. In 2013, Netflix executives said they'd view long-term success as "having substantially larger revenue [versus competitors] and therefore sustainable increasing content, tech, and marketing spending, leading to further growth, and a virtuous cycle." Indeed, Netflix has proven that cycle works very well over the last seven years, growing its subscriber base while increasing pricing.