![]() One of those studios was Gimlet, which as you may know, has been a co-producer of our show, along with the Wall Street Journal.Īnne Steele: Gimlet made really high quality, high touch, high production, investigative narrative pieces. Kate Linebaugh: Starting in 2019, the company spent hundreds of millions of dollars buying up several podcasting studios. And we strongly believe that this opportunity in audio starts with podcasting. Here's CEO Daniel Ek in 2019 talking about his vision.ĭaniel Ek: We believe that over time more than 20% of all listening on Spotify will be non-music content. Kate Linebaugh: And that is how Spotify found podcasting. Those margins aren't going to increase, so they needed to look beyond music streaming to find other ways of bringing in revenue and revenue that they could keep a bigger chunk of. ![]() It's just a really, really tough margin business, and there isn't a lot of room for negotiation there. Kate Linebaugh: How can that be? That it didn't make money?Īnne Steele: Spotify and any other streamers that do this as well essentially end up paying 70% of their revenue out to labels and artists and publishers. But at the same time, it doesn't make money from that business that it completely transformed. So it came in and disrupted the music business and became the biggest player by subscriptions and continues to be the industry leader in music streaming. Kate Linebaugh: That's our colleague, Anne Steele.Īnne Steele: And it came in and totally appended the music business, how we listened to and pay for music, the fact that we essentially rent access to music versus own music. Coming up on the show, why Spotify's billion dollar podcasting gamble hasn't paid off yet? Spotify busted onto the music scene in the 2000s with its new streaming platform.Īnne Steele: Spotify has been a very cool buzzy company since its inception. ![]() Kate Linebaugh: Welcome to The Journal, our show about money, business, and power. Kate Linebaugh: And how much money is Spotify making from that billion dollar bet?Īnne Steele: Spotify is not making money from podcasts at this point. How much money has Spotify invested in podcasting?Īnne Steele: A billion dollars at this point is how much Spotify has bet on this business. The partnership between Spotify and the couple was over, and the crumbling of that deal is just one of several cracks in Spotify's podcast ambitions. But less than a year after Archetypes debuted, it was canceled. This bet was part of a bigger strategy at Spotify to go beyond music into podcasting. Kate Linebaugh: Archetypes vaulted to the top of Spotify's charts. Meghan Markle: Hi, I'm Meghan, and this is Archetypes, my podcast about the labels and tropes that try to hold women back. Markle was the host, and she had a lineup of A-listers like Mariah Carey, Serena Williams, and Paris Hilton to talk about female stereotypes. In August of last year, the first episode in a new series dropped. Kate Linebaugh: Meghan Markle and Prince Harry signed a roughly $20 million deal with Spotify to make several podcasts together. Spotify announced an exclusive deal with the couple saying (inaudible). Speaker 2: Well, you can add Prince Harry and Meghan Markle to your list of high profile podcasters. Kate Linebaugh: At the end of 2020, Spotify made a big splash in the podcasting world. This version may not be in its final form and may be updated. This transcript was prepared by a transcription service.
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