Why Spotify's DC Deal Is All Around Super

Spotify Technology S.A. (NYSE: SPOT) is putting on its cape and saving the day for investors with its newest superhero deal with DC Comics. The company has just inked a deal with Warner Bros. to produce original narrative podcasts based on superhero and supervillain characters of the DC Universe that will be available exclusively on the streaming service.

According to the master plan, Warner Bros. will collaborate with Spotify to produce, market, advertise and distribute these shows on its platform. These narratives will be based on existing characters like fan favorites Harley Quinn and the Joker.

Warner Bros. also will use this to create new material for these characters. In a sense, the podcasts and platform could serve as a testing ground for potential new film and TV concepts for these characters. Essentially, Spotify could act as a test market for Warner Bros. before they are looking to commit more capital to a story or idea for any of these characters.

DC Comics has famously trailed Marvel in the box office, despite a huge following. Many fans have cited storylines as a problem. Notably, DC fans were not pleased with the most recent Justice League movie and were hoping for the film to be recut or the story restructured with the infamous Snyder Cut.

This deal with DC comes in the midst of a massive expansion within Spotify to expand its content. The company recently signed a deal with comedian and podcaster Joe Rogan for $100 million to bring his podcast exclusively to the platform.

Apart from this, the Wall Street Journal reported that Kim Kardashian West had reached a deal with Spotify for a new criminal-justice podcast. Earlier this year, the company acquired sports and pop culture outlet the Ringer.

Spotify stock traded up about 11% Thursday morning to $221.53, in a 52-week range of $109.18 to $221.99. The consensus price target is $168.77.