Published: Thu, February 07, 2019

Spotify Acquires Gimlet Media, Anchor in Podcast Push

Spotify Acquires Gimlet Media, Anchor in Podcast Push

He also added, "Based on radio industry data, we believe it is a safe assumption that, over time, more than 20% of all Spotify listening will be non-music content".

The first of the acquisitions is Gimlet Media, a podcast production company that will apparently bring Spotify its "best-in-class podcast studio with dedicated IP development, production and advertising capabilities". Anchor has a platform of tools for podcast creators as well as an established and rapidly growing creator base. That alone would be the biggest acquisition in Spotify's history.

"This means the potential to grow much faster with more original programming-and to differentiate Spotify by playing to what makes us unique-all with the goal of becoming the world's number one audio platform", Ek said.

Despite very loudly banging the spoken word drum - the intention is to become the leading producer of podcasts across the globe - Ek said that music retains a huge level of importance for Spotify.

"With the world focused on trying to reduce screen time, it opens up a massive audio opportunity", writes Ek.

"We are proud to welcome Gimlet and Anchor to the Spotify team, and we look forward to what we will accomplish together".

"Spotify is poised to become the largest audio platform in the world and we are excited for Gimlet's award-winning podcasts to connect with new audiences around the world", said Alex Blumberg and Matt Lieber, co-founders of Gimlet Media.

"The medium of audio is uniquely great at creating human connection and understanding".

According to Recode, Spotify is around $230 million for Gimlet. "We want Spotify to continue to be at the centre of the global audio economy". Nearly all podcasts are available free, and metrics for audience and engagement are fairly limited, which means most podcasters don't make money until they have acquired a significant audience.

Despite its widespread popularity, podcasting in the United States has remained a small industry.

When it comes to streaming music, Spotify is the world leader thanks to its almost 100 million monthly paid subscribers.

USA podcast ad revenue jumped 86 percent in 2017 to $314 million, according to research from the Interactive Ad Bureau and PriceWaterhouseCoopers.

Either way, it seems that podcasts are coming back in force.

Like this: