Music-streaming king Spotify sees a future in podcasts.
The watch free mainstream sex moviescompany announcedon Wednesday that it has made two huge acquisitions that firmly plant Spotify in the podcasting business. The music-streaming giant has bought Gimlet Media Inc., a popular podcast producer, and Anchor, a platform that helps creators produce and publish their podcasts.
According to Recode, Spotify is payingaround $230 million for Gimlet. Recode first reportedthat Spotify and Gimlet were in talks last week. It’s currently unknown how much Spotify spent on Anchor.
Recode points out that the acquisition puts Spotify in the content creation business for the first time -- something the company hasn’t done in its almost 11 years in the music industry.
Spotify isn’t finished with podcast-related acquisitions either. The company is looking to spend up to $500 million this year to bolster its podcasting business.
The amount Spotify is looking to spend on podcast companies is greater than a year of advertising revenuefor the entire podcasting market.
In a blog post, Spotify founder and CEO Daniel Ek shared his thoughts on the company’s latest moves into podcasting. He boasts that with its 200 million users, the music streaming service is already the second biggest podcasting platform after Apple iTunes. Ek says that he fully expects 20 percent of all Spotify listening to be non-music related content eventually.
Ek also touches upon some thoughts that help explain just why Spotify paid as much as it did for the acquisitions.
“Video is about a trillion dollar market. And the music and radio industry is worth around a hundred billion dollars,” Ek explains. “I always come back to the same question: Are our eyes really worth 10 times more than our ears? I firmly believe this is not the case.”
“With the world focused on trying to reduce screen time, it opens up a massive audio opportunity,” writes Ek.
Spotify has only been in the podcasting business for about two years, when it first rolled out podcasts onto its already very popular music streaming service. It was reportedback in 2017 that the company was talking with podcast producers, like Gimlet, in order to bring original podcast content to its platform. The service opened up to all podcastsjust this past October.
Gimlet is responsible for producing and publishing some of the most popular podcasts on the internet like Reply All, StartUp, and Crimetown. The podcast producer found even another mediumfor podcasting success when it turned one of its shows into the popular Amazon series, Homecoming.
In its own acquisition announcement, the podcast production and hosting platform, Anchor, stated that its platform is currently powering more than 40 percentof all new podcasts. (Disclaimer: The author of this piece was briefly contracted in 2017 to host a show for Anchor.)
For a medium on the rise, podcasting has been largely ignored as a business. Podcasters have complained that even Apple largely ignores podcasts when compared to its other services. It seems like Spotify may have found an opportunity.
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