Spotify Technology S.A. (SPOT) saw its stock soar by 5.03% in intraday trading on Friday, following news that pop superstar Taylor Swift has successfully bought back the master recordings of her first six albums. This development could potentially boost streaming activity on platforms like Spotify, driving up revenues and user engagement.

The acquisition of Swift's catalog, which includes hit albums such as "Fearless" and "1989," is expected to have significant implications for the music streaming industry. With Swift now in control of her earlier works, she may choose to promote these albums more actively on streaming platforms, potentially leading to increased listener activity. Spotify, as one of the leading music streaming services, stands to benefit from this renewed interest in Swift's extensive back catalog.

Music catalogs have become increasingly valuable assets in the streaming era, with companies like Spotify playing a crucial role in monetizing these libraries. According to industry estimates, streaming now accounts for approximately 70% of all music industry revenue. The news of Swift's catalog acquisition, potentially valued in the hundreds of millions of dollars, underscores the immense financial potential of popular music catalogs on streaming platforms. Investors appear to be betting that this high-profile move will contribute to Spotify's growth and profitability in the coming months.