Spotify is getting more serious about podcasts
Spotify (SPOT) is very bullish on podcasts. The company said it will be spending $500 million on podcasts this year. The company disclosed earlier this year that it already spent 358 million euros, or roughly $400 million, on acquiring three podcast companies, Gimlet, Anchor, and Parcast. The company recently announced a deal with Higher Ground, Barack and Michelle Obama’s production company.
As the music streaming giant faces stiff competition from the likes of Apple Music and others, the company is looking to differentiate its service. Spotify is looking to do to podcasts what it did with music by making personalized curated playlist.
Spotify has launched playlists that include podcasts
Now, the company is rolling out a new playlist dubbed “Your Daily Drive,” which includes both music and news podcasts in the US. According to the company, it is built to entertain commuters, who spend 70 billion hours driving.
The company also said that it may intersperse some timeless music classics once in a while in the latest playlist. The new playlist would represent the company’s first attempt to combine music with podcasts.
Spotify reached 100 million paid subscribers during the first quarter of 2019, and its push into podcasts may help it gain more subscribers.