Spotify’s Podcast Strategy Appears to Be Paying Off

In its third quarter 2019 report this week, Spotify says it saw “exponential growth” in podcasts, with a 39 percent increase in listens in just three months.

The US is the biggest consumer of the format, but Spotify is also seeing bumps in a number of European countries. And those people who come to Spotify for podcasts are, according to the company, more likely to sign up for premium than others.

The company is looking to further analyze the data about podcasts and premium sign-ups, but believes that it’s “onto something special.” If proven true, we can expect to see Spotify lean even harder in to owning the space, with more paid-for exclusive titles to lock people into subscriptions.

Spotify will bolster this podcast push by allowing anyone to make their own podcasts from within the app. Researcher Jane Manchun Wong found a “Create Podcast” button buried inside the app, suggesting that full Anchor — the podcast-creation app Spotify bought — integration isn’t far away.

And, with the purchase of SoundBetter, the company will have a thumb in the music production game as well.

Paying user totals have increased from 108 million last quarter to 113 million now, which is close to the top target Spotify set for itself in the summer. Part of that is down to a renewed focus on “winback” campaigns designed to coax people who tried premium, but didn’t pay, to give it another go. And in this quarter, it has offered a number of freebies, from Google Home Minis and long-term trials to selected AT&T customers.

Source: Engadget