Spotify has been pushing heavily into podcasting since its acquisition of Gimlet media and Anchor last year. Now it’s finally overtaken Apple, according to one Morgan Stanley analyst who spoke on CNBC.
Podcasting is an audio field that has been growing in revenue for years, and Spotify has been hoping to increase its earnings alongside this exploding industry.
Spotify has been growing its podcast consumer-base by building out new podcast recommendation tools that are useful for drawing the app’s already massive audience into the podcasting realm. If it can pull enough people into this space, then it can serve them more ads and make more money.
"Spotify has moved past Apple as the most popular platform for podcasts"
This @MorganStanley analyst breaks down why podcasts are a growing business, and why @Spotify is edging out @Apple in this space.$SPOT $AAPL pic.twitter.com/nn2DtUj2Mx
— Power Lunch (@PowerLunch) January 10, 2020
It’s even started making some podcasts exclusive so users have no choice but to listen to at least some content on the platform. This is likely a powerful strategy as well since you can listen to podcasts on Spotify with a free account and if you’re already in the app, it’s likely that you’ll listen to other shows and music there too.
The analyst only spoke on CNBC’s video news, so there’s no backup statistics that we can find. Still, given the amount of work Spotify is putting into gathering new podcast subscribers, it’s unsurprising that it’s growing this quickly.
Source: CNBC
