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.
- Podcasts matter to Spotify for five main reasons: original content, content diversification, creator opportunity, margin relief, a big non-music XXX million Spotify users streamed podcasts on-platform in XXX 2019, generating XXX million, while podcast hours were up XXX on XXX represented just XXX of Spotify’s total XXX 2019 revenue
- Spotify is weaponising podcasts for user acquisition much as Netflix did with TV shows, launching XXX original titles in XXX XXX 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 XXX of all podcast users, what Spotify does in podcasts will have major impact on the entire market
- Spotify will capture around XXX of the global podcast market in 2019; if it increases that share to XXX in 2020, it will generate around XXX 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