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Spotify Future in Podcast and how the Pandemic Affected it

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For a company that was still unprofitable, losing more than $200 million a year was hazardous. Spotify made an expensive bet, dispensing hundreds of millions of dollars into the podcast business.

Then the coronavirus epidemic hit, and podcasting consumption changed. People were no longer tuning in via their cars and wearable devices. Listening time around activities like cooking, doing chores, and family time suddenly rose.

The company never anticipated that such a thing would happen, and it could have been disturbing. Still, Officer Dawn Ostroff, Spotify’s Chief Content and Advertising Business, said the streaming service is getting stronger despite the pandemic.

Spotify

A Bold Risk

Spotify made its commitment to Podcasting last year when it acquired podcast-creation app anchor and production company Gimlet. The company acknowledged those purchases as a risk because there was no guarantee it could be profitable. They further bought Bill Simmons’ The Ringer, which owns dozens of podcasts.

In April, the company announced that the pricey acquisitions are starting to pay off. About 19% of Spotify’s active users listen to podcasts. Spotify said it reaches 286 million monthly active users, which translates to about 54.3 million podcast listeners.

Spotify is rising in popularity among listeners more than Apple, which was leading in podcast consumption.

Podcasting in a Pandemic

Notwithstanding the pandemic, podcast consumption continues to grow across the industry. Chartable CEO Dave Zohrob said his podcast analytics company saw a 20% drop in consumption at the beginning of March for podcasts using the platform. But by the end of March, it is now trending upward. Jonathan Gill, CEO of analytics company Backtracks, also stated that his platform showed a favorable increase in listeners compared to February.

Grundmann added that Podcasting is now the way people are spending time trying to educate themselves and have companionship during this period.

Richard is a Post-Graduate in Mass Communication who is acquainted with the dos and don’ts of ethical journalism and news writing techniques. He is also a contributor to the World news section at USA Reformer.

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