Reports Media & Marketing

Spotify Podcast Strategy Strong Start, Long Way to Go

Report by Mark Mulligan
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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        million Spotify users streamed podcasts on-platform in        2019, generating        million, while podcast hours were up        on        represented just        of Spotify’s total        2019 revenue
  • Spotify is weaponising podcasts for user acquisition much as Netflix did with TV shows, launching        original titles in               of Spotify users listen to podcasts monthly, so it has converted less than half of its user base to Spotify-streamed podcasts
  • With Spotify users representing        of all podcast users, what Spotify does in podcasts will have major impact on the entire market
  • Spotify will capture around        of the global podcast market in 2019; if it increases that share to        in 2020, it will generate around        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

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