It is little surprise that Spotify is making another big acquisition in the podcast space, following big deals with companies like Gimlet, Anchor and Parcast in the past two years. Since the beginning of 2019, CEO Daniel Ek has referred to audio as the future of the company, envisioning a world where Spotify was less dependent on music — and the content costs of such music — to gain and retain users, listener hours and, ideally, subscribers. In the past two months, Spotify announced a partnership with Chernin Entertainment to provide a pathway for its podcasts to turn into film and TV projects, and, through its Anchor platform, now allows music to be embedded into its shows without further licensing requirements.
In late October, the company announced in its third quarter earnings report that 22% of its monthly average users were listening to podcasts, with podcast ad revenue up nearly 100% year over year, part of its overall ad business returning to positive growth following the pandemic-related downturn earlier this year. It now has 144 million paid subscribers and 320 million monthly average users around the world, and Ek also floated a possible price hike to Spotify’s $9.99/month premium tier — which has not increased in the near-decade the service has been available in the U.S. — with the possible implication that some premium content, including its exclusive podcasts, could be offered at a varied price point in the future.
Recent personalities to secure podcasts on Spotify are Joe Rogan, Michelle Obama, Reba McEntire, Lele Pons, Amy Schumer and Kim Kardashian, while Scooter Braun’s Ithaca Holdings, Bill Simmons’ The Ringer and Warner Bros. also have podcasts either on the platform or on the way to it. iHeartMedia, YouTube, Apple, Amazon, SiriusXM and the major labels have also made significant moves into the podcast world over the past several months as companies look to expand the audio options for their platforms to provide additional content for subscribers and users.
