Spotify Technology S.A. (SPOT) shares surged 5.03% in intraday trading on Friday, outperforming the broader market. The significant uptick in the music streaming giant's stock price comes amid notable news in the music industry that could have far-reaching implications for streaming platforms.

The stock's rise coincides with the announcement that pop superstar Taylor Swift has successfully bought back the master recordings of her first six albums. This acquisition, while the exact price remains undisclosed, is believed to be one of the most valuable catalog purchases in music history. Swift's catalog now stands alongside those of legendary artists like Queen, Michael Jackson, and Bruce Springsteen, whose catalogs have been valued at over a billion dollars each.

This development could potentially benefit streaming platforms like Spotify. High-value catalogs from major artists are crucial for streaming services, as they drive user engagement and subscription growth. With Swift now in control of her early works, there may be new opportunities for exclusive content or promotional activities on streaming platforms. Moreover, the news underscores the growing importance of streaming rights in the music industry, which accounts for approximately 70% of industry revenue. As the value of music catalogs continues to rise, Spotify's position as a leading streaming platform could be strengthened, possibly explaining investors' optimistic reaction reflected in today's stock movement.