Spotify Podcast Strategy | Strong Start, Long Way to Go

The 20,000 Foot View: Spotify has bet big on podcasts, viewing them as a means to multiple strategic ends. After a number of major acquisitions, Spotify is beginning to deliver meaningful audience and revenue numbers. Though it is still early days for Spotify’s podcast strategy, there is clear long-term potential to transform the wider audio landscape.

Key Insights

  • Podcasts matter to Spotify for five main reasons: original content, content diversification, creator opportunity, margin relief, a big non-music bet
  • X million Spotify users streamed podcasts on-platform in Q3 2019, generating $X million, while podcast hours were up X% on Q2
  • Podcasts represented X% of Spotify’s total Q3 2019 revenue
  • Spotify is weaponising podcasts for user acquisition much as Netflix did with TV shows, launching 22 original titles in Q3 2019
  • X% of Spotify users listen to podcasts monthly, so it has converted X of its user base to Spotify-streamed podcasts
  • With Spotify users representing X% of all podcast users, what Spotify does in podcasts will have major impact on the entire market
  • Spotify will capture around X% of the global podcast market in 2019; if it increases that share to X% in 2020, it will generate around $X million
  • Podcasts could prosper in a recession due to more consumers listening for free and advertisers shifting spend to digital

Companies and brands mentioned in this report:  Acast, Anchor, Dax, Disney, Fox, Gimlet, Global, Marvel, Netflix, Pandora, Parcast, SiriusXM, Spotify

Charts: 2
Pages: 12
Words: 1,888

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