![]() ![]() Spotify’s podcast strategy since 2019 has been based on acquisition and exclusive original content. Spotify’s total revenue has grown 110% in three years, while ad revenue as a proportion of this has grown from 256% and Premium revenue by 96%. Insiders at the company, meanwhile, insist this is not the case. This drive to cut costs in a tougher economic climate “doesn’t mean we’re changing our strategy,” Ek clarified.Īnd yet it does appear to industry analysts that there has indeed been a shift in Spotify’s podcast strategy: away from exclusive originals, and potentially even podcasts completely. And, instead of talking about investing to grow, Ek told investors that Spotify would be “shifting to focus on tightening our spend and becoming more efficient”. While this ad-revenue share is an improvement by historical standards, 13% is still well short of the 20% Ek mandated in 2021. Spotify’s financials revealed last week that ad-supported revenue for Q4 2022 grew by 14% year-on-year to €449m, which the report said was “led by podcasting gains”.*įor the full-year 2022, ad-supported revenue reached nearly €1.5bn euros, up 22% year-on-year and making up 13% of total revenue.* This was quite an admission, given how Ek had challenged his audio streaming business to significantly increase its income from advertising relative to other areas of revenue, which mostly come from Premium subscribers and music streaming. When asked by an investment analyst whether Spotify’s previous podcast acquisition strategy and making 2022 “a year of investment” was “a mistake”, founder and CEO Daniel Ek replied “no and yes”. The company insists there is no change in strategy, but industry watchers disagree. Feature Spotify is now talking more about ‘efficiency’ and less about expanding its sizeable exclusive content trove of podcasts and audiobooks to diversify from music streaming. ![]()
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