Podcasts Q2 2020 Spotify Takes an Early Lead

The 20,000 Foot View:  Podcasts have become the next battle front for audio. Spotify’s ambitious content and product strategy have enabled it to become an early leader, but the podcast market is still in its infancy, with adoption far lower than radio or streaming music. Podcasts have greater long-term market potential than music streaming but with many divergent objectives among key players, the interplay of product and content strategy will delineate the competitive marketplace.

Key Insights

• In            2020,            led audio consumption with            weekly            user penetration, ahead of streaming            at            music radio at            and            at           
• Spotify is            the leading destination platform for            users. In            2020,            of podcast            used Spotify,            points ahead of            in second place
• Spotify podcast            penetration peaks at            of podcast            in Germany and is lowest            France           
• ACAST podcast            penetration peaks at            in the            but falls to            in Australia,            Downcast reaches            in the US            only            in Germany
• Spotify is            podcasts to increase its streaming            share:            of Apple Music weekly            users that are also podcast            get some of their podcasts            Spotify
• However, the            that Spotify’s exclusive podcasts are            front of the paywall makes            vulnerable during the recession to            cancelling in favour of Apple            while retaining the free app            podcasts
• In the            the BBC’s Sounds app            is            second most used platform for            after Spotify            and far ahead            Apple in third           
           of BBC Sounds weekly average listeners use it for podcasts, compared to            for NPR
• BBC Sounds            a blueprint for broadcasters to            app-centric product approach as the            of integrated audio strategy to            podcast adoption and audience transition
• Proving podcast            on investment to advertisers will            crucial during the recession
           of podcast weekly average users usually skip ads in podcasts, but            said they are more likely to pay attention to an audio ad than ads that are displayed online

Companies and brands mentioned in this report: ABC, ACAST, Apple, Apple Music, Apple One, Audible, BBC, BBC Sounds, CBC, Downcast, France Radio, Global, Google, Luminary, NPR, Overcast, Spotify, Stitcher