Revenue is diversified to high-margin podcast activity. Audiences are better engaged, allowing Spotify to generate opportunities to monetize the user base through targeted advertising (hence the Megaphone acquisition) and produce an uplift in premium subscriptions.Ģ. This strategy has two core effects on the business model.ġ. What is Spotify's podcast strategy, and how is it enabling growth?ĭuring a Spotify earnings call, company CEO Daniel Ek commented that the focus of its podcast strategy to date has been to grow listenership among existing users and maximize value from the existing user base, in part by diversifying what they are listening to. Related: Entrepreneur's Roster of Podcasts In short, creators will be able to monetize their podcasts more efficiently, and give Spotify the chance to be part of a broader market for advertising. Real-time ads can now target specific users, unlike other platforms that merely swap ads out with limited targeting ability. Such a pricey deal is rare for the industry, of course, one typically built on open principles rather than exclusivity, but the act of spending a vast amount on a medium that is not core business was telling - a significant shift in Spotify's strategy, but necessary for its growth.Īdditionally, Spotify's 2020 acquisition of the podcast tech company Megaphone - with its emphases on podcast hosting, analytics and monetization technology - means the parent company can now make streaming ad insertion (SAI) systems available to third-publishers hosting their content on Megaphone's platform. Since arriving on the platform in September of 2020, it became the company's number-one podcast in 17 territories after only six months. Joe Rogan, for example, one of the world's most successful podcasters, signed a multi-year and exclusive deal with Spotify that's worth a reported $100 million US. A doubling of its podcast listeners validates Spotify's decision to invest heavily in talented content generators, as well as its shift into markets beyond music with competition from Apple Music and Amazon Music, the company recognized the need to venture into broader sectors. The audio streaming giant Spotify partly credited the popularity of podcasts for its remarkable 24% jump in subscribers during the final quarter of 2020, which also helped boost advertising income by 29%. Accelerated growth in the podcasting space is and will be the continuing result of improved bandwidth and connectivity of smartphones and digital assistants. There are approximately two million active podcasts as of this story's publishing date, comprising more than 48 million episodes (the latter figure almost four times the amount from 2018). There's no need to re-request submission of your podcast to Spotify, but you should ensure that in your Spotify dashboard, the Licensor option is set to Audioboom LTD.The global podcasting market had an estimated value of $9.28 billion US in 2019, according to Grand View Research, with an expected average annual growth rate of 27.5% through 2027. Use the Add or Claim a Podcast option, and paste the feed URL you copied in step 3.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |