with their latest acquisition they have spent almost $ 1 billion in two years



Spotify continues to advance its quest for become the market leader in podcast distribution. This week the company announced a new acquisition: they are going to buy the advertising company specializing in podcast Megaphone for 235 million dollars.



This new purchase puts Spotify's spending close to $ 1 billion in acquisitions directly related to podcasts in just the last two years. Although if we look back, in 2017 they had already begun to invest in the subject, when they made the Soundtrap creation tool.



Shopping in the podcast world




Spotify



In February 2019, Spotify bought Anchor and Gimlet Media for $ 340 million. The former is one of the most popular podcast publishing platforms in recent times, and the latter is a major podcast producer.



In April of the same year they also took over Parcast for 55 million. Parcast is another major production company that, since 2016, had produced more than a dozen successful series that became the property of Spotify.







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Spotify started 2020 by buying The Ringer for $ 196 million. Bill Simmons' website and podcast network, with more than 30 podcasts in his repertoire, has been the largest individual investment to date.



With the purchase of Megaphone, the total money Spotify has spent on podcasts to date reaches $ 835 million, with a few weeks left in 2020.



Spotify has probably invested a good amount in exclusivity deals as well. (for which we do not know exact figures) with figures such as Joe Rogan, Kim Kardashian West, the Duplass brothers, and production companies such as Warner Bros., DC Comics, and Higher Ground Productions, the entertainment production company of Barack and Michelle Obama.



The investment seems to be paying off




Markus Spiske Op252bbynbs Unsplash



All that investment in podcasts is not being wasted. The consumption of podcasts skyrocketed during 2020, growing by 42% in the world and 53% in the European Union. All this with Spotify in the lead that has become a market leader, even above Apple in many markets.



They went from having 23% of the listener market share between January and May 2019 to having 41% in the same months of 2020. Spotify already makes more money with listening to podcasts than with listening to songs, and that is why they are investing so heavily in content. A content that has multiplied 129,000% in the last decade.







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Spotify already has more than 300 million users worldwide, of which 144 million are paying subscribers. Despite this, the company lost 101 million euros in the third quarter of 2020, in part because they are trying to increase their user base with premium plans with discounts.



The platform already has 1.9 million podcasts available, and they are rumored to be considering launching a special podcast-only subscription that would not include music and cost between $ 3 and $ 8 per month. Sooner or later Spotify hopes to recoup its investment in podcasts, and it seems to be well on its way to doing so.






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