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Home/Blog/Microblog/What Spotify Gets From Podcasting

What Spotify Gets From Podcasting

Its not a single thing, there are multiple positive impacts to Spotify business.

  1. Podcasts replace music listening. A quick win because time spent listening to podcast means less fees to music companies. Music licensing is the single largest cost Spotify has.
  2. Better negotiation power with music companies. Spotify has no negotiation power with big music. A podcast roster can diversify revenue and reduce dependency
  3. Some podcast operators want an ad network where someone else sells the ad spots. Spotify could build a ‘Google Ads’ for podcasts business.
    • Smart people remember that Google Ads was a key part of killing professional blogging when Google realised they had full control of the relationship and increased their share until the small players were squeezed out.
  4. Having exclusive podcasts might drive people to sign up. This increases revenue straight to the bottom line
  5. Today Apple Podcasts remains the dominant podcatcher and directory service but Spotify could make play to take control of the market. Lets face it, Apple hasn’t shown any interest in participating in podcasting.
  6. Spotify gets to test the market for video – could it compete with Youtube ? It wouldn’t cost much and would be trying for a few years.

Published on:4 June , 2020 Last Modified: June 4, 2020

Categories: Microblog

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Greg is the Co-Founder of Packet Pushers Interactive LLC, speaker,co-host of the Packet Pushers Podcast and analyst.

I'm a recovering Network Architect/Engineer who survived 25 years of Corporate IT . You can hire me for contract work, freelance or ad hoc work by the hour.

Packet Pushers is the largest weekly data networking podcast in the world delivering 500K downloads per month.

I'm also professional writer, presenter, speaker and author.

My technical site is EtherealMind.com. Sometimes I speak at events.

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