It’s an undeniable fact that Spotify has relied on podcasts for several years to become the essential platform in this market. The Swedish giant has already invested more than $ 800 million in content purchases and technology investments.
Spotify keeps great assets for the future
This has resulted in impressive stunts such as the signing of the most popular show in America. The Joe Rogan Experience or the Obama couple’s podcast. Spotify firmly believes in the feasibility of its programming and has even partnered with the production company Chernin Entertainment. As part of this multi-year contract, more than 250 platform programs are examined that could lead to adaptations of films and series.
Over time, however, some question the relevance of this strategy to the viability of the business. So in a message addressed to the investors and forwarded by the investors diversity, Financial analyst Jason Bazinet is sounding the alarm. He denounces, “The premium subscription and application download data rates are showing no significant benefit from recent podcast investments. “” From then on, he changed the company’s rating, even proposing to “sell” its securities.
This warning comes because there are many rumors pointing to a possible launch of a paid podcast service by Apple. Spotify would have the same ambition, but neither company has entered the battle yet.
The Swedish streaming giant still retains valuable assets in this competition. The company can count on 320 million users, including 144 million paying subscribers. It also hosts more than 1.9 million podcasts.