Spotify’s ongoing push to capture more of the podcasting landscape

guest · Jun 17, 2020

The podcasting world is now Spotify versus everybody else
The Joe Rogan deal makes the company’s big ambitions known
May 21, 2020
https://www.theverge.com/21265005/s...rience-podcast-deal-apple-gimlet-media-ringer

In what’s likely the biggest deal ever for a single podcast, Spotify announced this week that Joe Rogan’s enormously successful show, The Joe Rogan Experience, will become a Spotify-exclusive. Combined with a blockbuster spree of other podcast acquisitions over the last year and a half, the company is now set up to become the biggest name in podcasting — and to possibly control podcasting in an unprecedented way.

There’s never been a single podcasting company that sells ads, makes shows, has an already-popular podcast player, and offers the tools to make new series. Spotify now has all of that, and the Rogan deal means it also offers a hit show that guarantees millions of people will regularly use its platform for podcast listening.
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This year, Spotify continued to spend big on talent acquisitions. In February, Spotify acquired The Ringer and Bill Simmons’ flagship show, reportedly for around $196 million. And now there’s Rogan’s deal, which could reportedly cost Spotify more than $100 million. The team spent a lot of money all in an effort to lock down some of the industry’s top content and commit their series — and ads — to Spotify.
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Joe Rogan’s podcast is becoming a Spotify exclusive (May 19, 2020)

A massive gain for the platform
Joe Rogan, comedian and host of one of the most popular podcasts in the world, is taking his show to Spotify. The Joe Rogan Experience will soon become a Spotify exclusive, meaning episodes’ full audio and video will only be available through the platform starting later this year. Up until now, Rogan’s show has never been available on Spotify, let alone exclusive to any platform.
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guest · Jun 17, 2020

Kim Kardashian West is the next superstar celebrity to snag an exclusive podcast deal with Spotify
Following Joe Rogan’s landmark deal
June 17, 2020
https://www.theverge.com/2020/6/17/...sive-podcast-innocence-project-deal-announced

Kim Kardashian West has entered into a deal with Spotify to produce and host a new exclusive podcast. The deal follows Spotify’s landmark contract last month with podcast juggernaut Joe Rogan, who is moving his podcast The Joe Rogan Experience to the music streaming platform this later this year. The Wall Street Journal first reported Kardashian West’s deal on Wednesday.

It’s unclear what the financial terms for the deal are; media reports said Rogan’s exclusive contract with Spotify was worth more than $100 million.
The podcast, which will be distributed under the Parcast network Spottily acquired last year, will spotlight both Kardashian West’s involvement and the investigative work of co-producer Lori Rothschild Ansaldi. Both will co-produce and co-host the show.
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The deal is just the latest in Spotify’s ongoing push to capture more of the podcasting landscape. The company purchased Gimlet Media, maker of popular podcasts Reply All and The Pitch, in 2019. Back in February, Spotify purchased The Ringer — [...]

With deals like Rogan’s and now one with Kardashian West, Spotify has established itself as the most well-funded company in the podcast space. It’s willing to pay for exclusivity, and it’s clearly interested in chipping away at the dominance of other platform owners like Apple and, to a lesser extent, YouTube, where plenty of podcasters also post video versions of recordings.
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guest · Jun 18, 2020

Spotify lands deal for exclusive scripted podcasts featuring DC comic book characters
June 18, 2020
https://www.cnbc.com/2020/06/18/spo...-podcasts-featuring-dc-comics-characters.html

Spotify’s podcast deal spree continues.

The company said Thursday it has a new partnership with DC and Warner Bros. to exclusively produce and distribute a new slate of narrative scripted podcasts featuring popular comic book characters.
[...] the deal includes the intellectual property of the entire DC universe, which includes the Superman, Wonder Woman, Batman, The Joker and Harley Quinn franchises, among others.
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Spotify said in addition to producing narratives based on existing characters and franchises from Warner Bros. and DC, the companies will also work with Spotify to create new programming from original intellectual property.

“Both new and reactivated [monthly active users] grew substantially even during lockdown periods in major markets,” he said. “And we believe this is a testament to how engaging our platform and ecosystem are to our users. [...] We now have more than 1 million podcasts on the platform, and we’re the No. 1 audio service for podcasts in dozens of countries around the world and quickly gaining ground where we’re not.”
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Rasheed187 · Jun 20, 2020

It's ridiculous how much Spotify's stock value has risen, can't believe I missed out.

guest · Jul 22, 2020

Spotify reaches new multi-year licensing deal with Universal Music Group
July 22, 2020
https://www.neowin.net/news/spotify-reaches-new-multi-year-licensing-deal-with-universal-music-group

Spotify has struck a new global multi-year licensing deal with Vivendi's Universal Music Group (UMG). The music label will reinforce Spotify's catalog and products, and "deepen its leading role as an early adopter of future products" on the latter's platform. It will also collaborate on new, state-of-the-art marketing campaigns across Spotify's platform, which means the label will be paying Spotify to promote its artists.

Future products released by Spotify will continue to be available to UMG as an early adopter, and the music label will provide valuable feedback to Spotify's development team.

“From their early experimentation with Marquee, to testing new experiences like Canvas, Universal Music Group has been an important partner in helping to shape the development of our marketing tools. With today’s announcement, we will expand on this level of early stage innovation and further strengthen our partnership and shared vision for helping advance artists at all stages of their careers."
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Spotify recently announced support for video podcasts, though the feature is launching with select podcasts, and earlier this month, the music streaming service was launched in Russia and another 12 countries.
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UMG: Spotify and Universal Music Group Announce Global, Multi-Year License Agreement

Spotify (NYSE: SPOT), the world’s most popular audio streaming subscription service, and Universal Music Group (UMG), the world leader in music-based entertainment, today announced a new, multi-year global license agreement that further aligns the companies’ efforts to foster groundbreaking new features providing value for artists and great experiences for music fans.
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guest · Aug 23, 2020

Comment: Spotify isn’t trying to take over podcasting, but rather become the YouTube of audio
August 23, 2020
https://9to5mac.com/2020/08/23/comm...sting-but-rather-become-the-youtube-of-audio/

The podcast industry is at a crossroads in 2020. Since 2004, we’ve enjoyed an open ecosystem with podcasting driven by RSS feeds.
As Spotify has made its mark on the industry with exclusive shows, it’s worth discussing the differences between free shows, the open podcast market, and paid podcasts.
Free podcasts
Free podcasts are pretty self-explanatory. They are free to listen to, and they likely include advertising. Free podcasts are the types of podcasts we’ve all been accustomed to since we started listening to podcasts

An exclusive Spotify podcast can be free but not be an open podcast since it can’t be subscribed to in podcasts that allow manual subscriptions.
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Open Podcasts
One of the benefits of an open podcast is that people are not locked into a specific app for a particular podcast.
Closed Podcasts
An example of a closed podcast is the new The Michelle Obama Podcast that is a Spotify exclusive. While Spotify users can “subscribe” to the show, there is no way for users of another podcast application to subscribe to the show.
When Joe Rogan’s show becomes a Spotify exclusive later this year, it will also become a closed podcast. These are shows that do not have a public RSS feed and can only be subscribed to in a single application.
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Why does free, open, and closed matter?
The very concept of free, open, and closed podcasts is a crucial distinction because Spotify doesn’t support subscribing to a podcast from an RSS feed.

It appears Spotify is trying to become the YouTube of audio content vs trying to edge Apple out of the podcast market. They want to be the centralized place for all of your audio content in order to become the centralized advertising medium for audio content. By controlling what shows can be consumed on the platform, Spotify is in complete control of every aspect.
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guest · Aug 27, 2020

Joe Budden Says He’s Splitting From Spotify, Claims Platform ‘Undermined and Undervalued’ Exclusive Podcast
August 26, 2020
https://variety.com/2020/digital/news/joe-budden-podcast-spotify-deal-exclusive-exit-1234750199/

UPDATED: Popular podcast host and cultural commentator Joe Budden said he will leave Spotify after a two-year exclusive run of his “The Joe Budden Podcast with Rory and Mal” on the service, claiming the audio provider is “pillaging” his audience.

“September 23rd, I cannot tell you where this podcast will be,” Budden said. “But as it stands, I can tell you where it will not be, and that is Spotify.”
In recent weeks, Budden has been telling listeners about his unhappiness with the current arrangement, before he announced Wednesday that he’s planning to take the show elsewhere.

“Spotify never cared about this podcast individually,” Budden said in the podcast. “Spotify only cared about our contribution to the platform.” Budden added that his talk show has been “undermined and undervalued,” pointing to a recent deal with Bill Simmons’ The Ringer for $250 million which, he said, was “actively pitting [these signings] against us.”
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Budden accused Spotify “pillaging” his audience as a way to build up its broader podcast strategy. “You pillage the audience from the podcast, and you’ve continued to pillage each step of the way without any regard” for the listeners, he said
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guest · Sep 13, 2020

Spotify’s value jumped after buying the “Joe Rogan Experience”
September 11, 2020
https://qz.com/1901085/spotifys-value-jumped-after-buying-the-joe-rogan-experience/

Spotify is having quite the 2020. Today, the streaming giant’s market value is at about $46 billion—as recently as early April, Spotify was worth half that.

What changed? Not a lot, actually. The Swedish company continues to see steady revenue and user increases, but reported losing €355 million ($420 million) in the first half of 2020. (It didn’t make a profit in 2018 or 2019 either.)
Still, Spotify’s stock has grown twice as fast as the S&P 500 since Covid-19 spurred a market dip in March.

The most likely explanation for the sharp increase is investors’ hope that Spotify can become the Netflix of podcasts, explains Pivotal Research Group analyst Jeff Wlodarczak.
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Since the beginning of last year, Spotify has also acquired podcasting companies The Ringer and Gimlet Media, and inked an exclusive deal for Michelle Obama’s podcast.
Wlodarczak sees these moves as a way to gain leverage against the four music labels that control more than 90% of Spotify’s music content.

If exclusive podcasts can attract and keep users on its platform, Spotify may be able to negotiate keeping a larger share of what it earns from subscribers (Spotify currently gives music labels more than 50% of revenues).
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Spotify’s podcasting gamble may not work. The company is facing deep-pocketed competitors in Apple and Google (owner of YouTube Music), [...] But for the moment, investors seem to believe that Spotify’s “Netflix of podcasting” dreams just may come true.
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guest · Nov 7, 2020

Spotify could be working on a podcasts-only plan, but would you pay for it?
Spotify has invested heavily in podcasts recently, so it’s going to need to get that money back somehow
November 6, 2020
https://www.androidauthority.com/spotify-podcasts-plan-1175620/

Over on Twitter, Andrew Wallenstein — the president of Variety’s intelligence program — tweeted out an interesting set of screenshots (via The Verge). The screenshots show an official survey distributed by Spotify to some of its subscribers. The survey centers on whether or not users would subscribe to a hypothetical subscription service centered only on podcasts.

Theoretically, this additional subscription service would not include access to Spotify’s collection of music. It is unclear if this would be an additional subscription independent of the music service, an add-on for current subscribers, or something different altogether.
Granted, this is just a survey.
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Spotify podcasts: Gotta make money somehow
Whether or not Spotify is actually working on a subscription service centered around podcasts, it’s inevitable that a money-making system is on the way. Over the past few years, the company has invested millions in exclusive podcasts — most notably The Joe Rogan Experience, one of the world’s most popular shows. It needs to recoup all that money somehow.

The question then becomes whether or not users will pay for access to podcasts. The survey suggests there could be multiple tiers with perks such as access to exclusive episodes/content, ad-free listening, and a few other premium features.
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The Verge: Spotify hints at subscription podcast service

No music included
Spotify appears to be interested in launching a subscription podcast service that would offer access to original shows or exclusive episodes for a monthly fee.

Looks like the premium podcast plan would be ad-free and some mix of exclusive extra content at price points somewhere between $3-$8. pic.twitter.com/ArK8xYg0CM
— Andrew Wallenstein (@awallenstein) November 6, 2020
Eventually, Spotify is going to want to make money off of the huge sums it has sunk into podcasting — and it seems we may have an early look at what that’ll be like.
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guest · Nov 10, 2020

Spotify to buy podcast ad company Megaphone for $235 million
Now, it’s taking steps further to monetize all that content with the help of a new acquisition
November 10, 2020
https://www.cnbc.com/2020/11/10/spotify-to-buy-podcast-ad-company-megaphone-for-235-million-.html

Spotify is making yet another podcast acquisition.

The company said on Tuesday it has entered into an agreement to acquire ad tech company Megaphone in a $235 million deal. The companies declined to say whether the deal was in cash, stock or a mix of both. Spotify shares were down more than 5% Tuesday morning.

Megaphone offers technology for podcast publishers and advertisers seeking targeted slots on podcasts. It offers podcast hosting, distribution and ad-insertion tools for podcast publishers like ESPN and the Wall Street Journal, and advertisers can use the company’s technology to find audiences across the podcast content of those publishers.
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Megaphone, previously called Panoply Media, rebranded in 2019 after laying off its podcast production team to focus on the technology platform side of its business.
The deal should give advertisers more scale in terms of who they can reach on Spotify and let podcast publishers opt-in to have their shows monetized.

“I think there’s been very little innovation, particularly on the podcasting side in terms of how to better target advertising and allow creators to actually monetize their product in a much higher way,” the company’s CFO Paul Vogel said on its recent third quarter earnings call.
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guest · Dec 15, 2020

Prince Harry, Meghan Markle Sign Spotify Deal for Exclusive Podcasts
December 15, 2020
https://variety.com/2020/digital/news/prince-harry-meghan-markle-spotify-podcasts-1234853387/

Prince Harry and Meghan Markle want to bend some ears under a new deal with Spotify to produce original audio programming for the global streaming platform.

Under the multiyear pact, the couple’s newly formed Archewell Audio production company will create programming exclusively for Spotify. Among those will be podcasts hosted and produced by the Duke and Duchess of Sussex themselves — with the goal of the overall slate to “build community through shared experience, narratives and values.”
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For Spotify, the exclusive deal with the couple marks its latest move to amp up its podcast business.
Like all podcasts on Spotify, including those exclusive to the platform, the Archewell Audio programming will be available for free with ads as well as to Spotify Premium subscribers with no ads.
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guest · Dec 16, 2020

Spotify Inks Deal to Stream NPR Podcasts Worldwide
December 16, 2020
https://www.yahoo.com/entertainment/spotify-inks-deal-stream-npr-110041605.html

Spotify is now shipping NPR’s podcasts worldwide.

The streaming-audio company inked a deal with NPR to distribute 26 podcasts — including “NPR News Hour,” “Planet Money,” “Car Talk” and “Wait Wait… Don’t Tell Me!” — outside the U.S. A few NPR shows that are available on Spotify U.S. aren’t part of the international-distribution pact, including most notably “Fresh Air” hosted by Terry Gross.
NPR’s podcast catalog is already available on Spotify in the U.S., where shows from the public broadcaster have been available since 2018.
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Starting Wednesday (Dec. 16), Spotify is distributing NPR shows in most of the 92 markets in its footprint, with the exception of several countries where the content is restricted, including Singapore, Turkey, Philippines, Vietnam, India, Hong Kong and Taiwan. Spotify said it isn’t selling ads for the NPR podcasts.
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It’s yet another move by Spotify to hook podcast listeners by pulling premium content into the platform. Just yesterday, the company announced a multiyear deal with Prince Harry and Meghan Markle for a slate of original podcasts.
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NPR: Podcast Lovers Around The World Can Now Play NPR Shows On Spotify

guest · Dec 21, 2020

Spotify made huge investments in podcasts — here’s how it plans to make them pay off
That’s where ad tech comes in
December 19, 2020
https://www.cnbc.com/2020/12/19/how-spotify-plans-to-make-money-from-podcasts.html

Spotify’s podcast library has been bolstered by high-profile deals like its acquisitions of Gimlet Media, Anchor, Parcast and the Ringer. It also gained the exclusive rights to Joe Rogan’s podcast, worth an estimated $100 million alone, which has a cult-like following and regularly ranked at the top of the podcast charts. It has since signed TikTok influencer Addison Rae, Kim Kardashian West, DC Comics, Michelle Obama and The Duke and Duchess of Sussex.

Now it needs to show those investments were worth it. Analysts say Spotify’s new approach to advertising will help.

“Once the pieces are in place to monetize podcasts in a scalable way, I think it’s just going to explode the dollars coming into podcasts. The medium is just made for advertisements,” Stifel analyst John Egbert told CNBC.
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Spotify’s “Streaming Ad Insertion” tool, which it introduced earlier this year, dynamically inserts audio ads into podcast streams on its platform, allowing for more targeting and measurement.

As streaming ad insertion tech becomes more prominent, and as podcasts continue to explode in popularity, some advertisers may become more comfortable with spending on many of the other third party podcasts available through Spotify.

“I think what’s going to be key is for Spotify to monetize other third party shows,” Egbert added.
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guest · Jan 21, 2021

Ava DuVernay is the newest celebrity to sign a Spotify-exclusive podcasting deal
For scripted and unscripted shows
January 21, 2021
https://www.theverge.com/2021/1/21/22242381/ava-duvernay-spotify-podcast-audio-deal-exclusive

Spotify is continuing its pursuit of podcasting talent. Today, the company announced that it’s partnering with filmmaker Ava DuVernay and her Array media collective to launch exclusive scripted and unscripted audio programming. Those shows will come out of Spotify’s Gimlet team, and Spotify didn’t offer any preview of what the new programs might entail.

The strategy with all these deals seems to be building out a robust catalog of programming that has something for everyone. This, in turn, could bring more people to the Spotify app and turn them into lifelong users who, ideally, also pay for a premium subscription.
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guest · Jun 18, 2021

Spotify buys podcast discovery platform Podz as war with Apple heats up
June 17, 2021
https://appleinsider.com/articles/2...very-platform-podz-as-war-with-apple-heats-up

Spotify on Thursday announced the acquisition of Podz, a podcast discovery service that enables content creators to better promote their show using audio clips selected through a special algorithm.

The purchase is Spotify's latest step toward creating a feature-rich podcasting experience that beats out industry incumbent Apple. As with music, Spotify is looking to upgrade its product by focusing on content discovery, an area where Podz can help, reports TechCrunch.

"At Spotify, we are investing to build and scale the world's best (and most personalized) podcast discovery experience," Spotify said in a statement. "We believe that Podz' technology will complement and accelerate Spotify's focused efforts to drive discovery, deliver listeners the right content at the right time, and accelerate growth of the category worldwide."
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Spotify: Spotify Accelerates Podcast Discovery With Acquisition of Podz

At Spotify, we are investing to build and scale the world’s best (and most personalized) podcast discovery experience—and we’ve acquired Podz, a small, talented team of entrepreneurs, engineers, and designers, to help make that experience even better.

We plan to integrate Podz’ technology into the Spotify experience, and listeners should start seeing elements of that work before the end of the year.
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guest · Aug 22, 2021

Spotify and WWE are tag-teaming on podcasts
August 20, 2021
https://www.engadget.com/spotify-wwe-podcast-network-greenroompodcast-180202849.html

It's a big weekend in the world of pro wrestling. WWE has two major shows lined up, including one of its marquee events, SummerSlam, which takes place at Allegiant Stadium in Las Vegas on Saturday. The company is making some strides elsewhere, thanks to a new audio content partnership with Spotify.

WWE and The Ringer (which Spotify bought last year for around $200 million to bolster its sports lineup) are building a podcast network together. The Ringer podcast The Masked Man Show has been rebranded as The Ringer Wrestling Show. More podcasts are on the way [...]
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Along with the podcasts, there'll be live audio discussions on Spotify Greenroom after every big WWE pay-per-view event.

WWE is a solid get for Spotify, given the brand's popularity and global reach.
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guest · Oct 27, 2021

Spotify expects to have over 400M users by the end of the year
As the company continues to profit from podcasting
October 27, 2021
https://www.theverge.com/2021/10/27...1-earnings-podcast-music-streaming-financials

Spotify now has 172 million paid subscribers and 381 million monthly active users, the company announced today in its latest earnings release. That’s up from 165 million paid subscribers and 365 million monthly active users last quarter, with both figures up 19 percent year-over-year. Those are in line with what Spotify was expecting this quarter.

The growth means that Spotify continues to be the biggest music streaming service in the world.
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Overall the company made a profit of €2 million up from a loss of €101 million in the same quarter the previous year. Both are relatively unusual for Spotify, given its emphasis on growth rather than quarterly profit or revenue. Average revenue per user has been helped by price increases from the company over the last year.

We became the #1 platform for podcasts that U.S. listeners use the most, according to Edison Research and our own internal data; we launched podcasts in additional markets and more. Find more information about $SPOT Q3 2021 here: https://t.co/BV6CqbCLC3 pic.twitter.com/Xa7DgYh4Qu
— Spotify News (@SpotifyNews) October 27, 2021
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Earnings were buoyed by growth in podcast advertising, rising from 10 to 13 percent of total revenue, according to The Wall Street Journal. Spotify says that the amount of its users engaging with podcasts is accelerating, and that podcast share of overall consumption hours reached an “all-time high” this quarter. The amount of podcasts on the platform now sits at 3.2 million, up from 2.9 million at the end of the previous quarter.
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guest · Oct 27, 2021

We became the #1 platform for podcasts that U.S. listeners use the most
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Spotify says US podcast listeners now use its service more than Apple Podcasts
October 27, 2021
https://techcrunch.com/2021/10/27/s...now-use-its-service-more-than-apple-podcasts/

According to eMarketer’s recent data, Spotify and Apple Podcasts have been neck and neck in terms of U.S. podcast listeners. Its analysts said last month Spotify would reach 28.2 million monthly U.S. podcast listeners by year-end, topping Apple Podcast’s 28.0 million by a thin margin.
Reached for comment, Edison Research confirmed the podcast milestone is based on usage, not downloads.

“So why did we succeed this fast? Well, obviously our content investments have helped a great deal,” said Ek.
Ek said that the company’s culture of innovation, which leads to an improved user experience, brings more creators to the platform to share their content. This in turn, brings more advertisers.

“And all of these things coupled together — users, creators and advertisers — unlock the power of our flywheel,” he added.
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However, Spotify’s milestone in U.S. podcast listenership (which Spotify confirmed to TechCrunch had not yet been shared until now) comes shortly after a revamp of Apple’s Podcasts app, which was criticized by creators and end users.

Meanwhile, podcasts are helping Spotify boost its bottom line.
It did not break out how much of its ad revenue is now generated by podcasts, but said its podcast advertising growth rate was “in the triple digits.”
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On the product side, the company released a number of updates to its podcasts platform in the quarter, including the launch of paid podcast subscriptions in the U.S., new interactive features for Anchor creators, expansion of its Music + Talk podcast format and video podcast support, among other things. It also released 32 new Originals & Exclusives, including “Armchair Expert” with Dax Shepard and “Call Her Daddy” in July, and announced a multi-year content partnership with The Ringer and WWE for original and exclusive content. Internationally, Spotify release 76 new Originals & Exclusives.
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guest · Oct 26, 2022

Spotify hits 195 million paid subscribers
With an additional 273 million free users, the platform has a total of 456 million MAUs
By Ariel Shapiro - October 25, 2022

Spotify now has 195 million paying subscribers, the company announced on Tuesday, an increase of 7 million since last quarter, surpassing guidance by 1 million net adds. The company expects to cross the 200 million mark by the end of the year.
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The fact that music is only getting more expensive explains Spotify’s push into podcasting, and its library is growing. There are now 4.7 million podcasts available on the platform, up from 4.4 million the quarter prior. Although podcasting is still not profitable for Spotify, the company said it saw double-digit growth in podcast revenue.

Things are a little tricky with its in-house podcasts, though. On a call with investors, Spotify CFO Paul Vogel referred to a one-time “restructuring charge” in its podcasting business, which seems to refer to the layoffs at Gimlet and Parcast earlier this month. Those changes, Vogel said, “should lead to improved productivity at select studios.”
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guest · Nov 16, 2022

Spotify’s video podcast publishing tools expand to creators worldwide
By Sarah Perez @sarahintampa - November 15, 2022

Spotify today is expanding its video podcasting capabilities to creators in more than 180 markets worldwide, which means the functionality is now available in nearly all the markets where Spotify’s podcast creation software, Anchor, is currently available. The feature first entered wider testing last year, then officially launched in April to a handful of key markets, including the U.S., before rolling out to half a dozen more countries this summer, including parts of Europe.

The move puts Spotify in closer competition with YouTube, where video podcasts have been growing in popularity.
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With today’s expansion, Spotify says video podcasters can now use Anchor’s tools to reach Spotify’s audience of 456 million monthly listeners, while listeners can take advantage of features like the ability to switch between watching the video and playing the video in the background.
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