Report Overview


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Spotify’s podcast play


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GAIN ACCESS
Spotify is investing heavily in podcasting through acquisitions, original content and product innovation
It is under pressure to reduce dependence on record labels, whose power makes generating large profit margins difficult. Podcasts promise a non-music content genre where Spotify can capture more value
Secondary benefits abound: Spotify can take an active and lucrative role in modernising online audio advertising, it can solve the podcast discovery problem, and engagement across more forms of audio will improve retention

Contents

Spotify’s business results in the red

The Future in Podcasts

Attract users, sell ads and reduce the cost of listening

  • Podcasts promise Spotify a better bargaining position
  • Building and exploiting a marketplace
  • Podcast advertising in need of modernisation

Exclusives and originals

Spotify: well-placed for podcasts, less so for profits

List of charts/tables

Figure 1. Spotify margin, overall business

Figure 2. Key Spotify podcast-related acquisitions

Figure 3. Anchor podcast listens/downloads by platform (September 2018)

Figure 4. Top 500 songs/albums share of total sales/streams

Figure 5. UK adspend per hour of listening, 2017 (£)

Figure 6. Amazon publishing content pipeline

Figure 7. Potential Spotify podcast content pipeline