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Spotify becomes a leader in the podcast market and creates tension in the competition

May 26, 2020

After acquiring the most-heard podcast in the United States, the audio streaming platform positioned itself as number one in this sector.

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Spotify becomes a leader in the podcast market and creates tension in the competition
Spotify becomes a leader in the podcast market and creates tension in the competition

Spotify This week acquired “Joe Rogan Experience”, the most listened to American podcast with 190 million downloads per month, according to data from The Wall Street Journal, and thus positioned itself as the world market leader in the podcast market, which led to resistance in the competition.

The platform in just 16 months Streaming Audio has invested more than $ 600 million in publishers to become a giant in the sector. Agree MIDiA researchSpotify had surpassed Apple in the first quarter of the year as the first medium to hear this content in both North America and the UK.

Mark Mulligan, director of MIDiA Research, said that this was achieved very quickly, but the direct benefits are currently low, as he estimates that podcast advertising revenue is 1% at Spotify. He added that this is a platform bet to diversify their income. However, it will be a long time before they reach their goals.

It is important to note that the platform pays no rights for podcasts, as it does with music, and in its free version places ads on them “without spending money on developers,” said Nick Hilton, co-founder of the podcast Producers. British Podot.

Hilton added that he would not be surprised by the opposition’s reaction to buying the most-heard podcast in the United States.

The fear and resistance to these actions by Spotify and some new podcast players comes from the loss of the open format that these types of materials have and that can be heard on different platforms. And that the advertising revenue that the giant of the Streaming The music.

Marco Arment, creator of the podcast platform Overcast, said: “To a certain extent, we should be concerned that Spotify will successfully block entire parts of this open ecosystem,” adding that it would not be a good thing if it were needed Go through this platform to monetize a program.

Other radio giants like iHeart or The New York Times They do not practice the exclusivity format and are available on different platforms.

Maybe Spotify is more than an industry concern, but it doesn’t endanger the variety of content. According to the search engine, the advertising sector is spread over 1% of the existing podcasts, which corresponds to more than one million Listen to notes. Others depend on financial contributions from listeners, which may or may not be mandatory.

According to Mark Mulligan, it will be a more segmented market, a combination of big and small, but not just one or the other.

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