Spotify’s massive Podcast Deal will accelerate the growth of its podcast audience
Spotify recently signed a multi-year licensing deal with Joe Rogan, a popular podcast host with an enormous audience. The Joe Rogan Experience is one of the most downloaded podcasts, and its loyal fan base could massively benefit Spotify.
Spotify’s aggressive push into the podcast business to become a complete audio platform will widen its moat, give it a significant edge over its competitors. Spotify podcast library now contains over 1 million titles, with 78 original and exclusive podcasts launched in the last quarter.
Spotify is also investing in podcast technology by developing its Streaming Advertising Insertion (SAI) tool, which is designed to insert relevant advertising into podcasts. This is a revolutionary, trailblazing move in the podcast business. Better targeted ads will be more relevant to the listeners and more effective to the advertisers. The music streaming king is still in the early stages of leveraging its podcasting ad business, but it is showing huge promise.
Spotify’s advertising business (~10% of total revenues) has taken a hit due to COVID-19. However, the company’s premium business is booming with paid subscribers growing 31% Y/Y in the most recent quarter, outpacing expectations. Spotify is experiencing high engagement levels at home on Television, smart speakers and game consoles.