Five million shows and a 1400 percent increase in podcast consumption since 2019: Spotify is a power in the field of podcasts and likes to point it out. But this position has been bought dearly by the Swedish service. Acquisitions and, above all, exclusive agreements with star podcasters such as the controversial and popular Joe Rogan have cost Spotify a total of more than a billion dollars.
The basic idea of the strategy makes perfect sense: more podcast consumption reduces dependence on the music industry, the shows are an attractive advertising environment, and podcasts that can only be listened to on Spotify are also a decisive argument for some users. In the meantime, Spotify has become an established contact platform for podcasters and fans alike, and exclusive deals are losing their appeal.
Above all, however, the expensive bet still pays off only to a limited extent. 2022 was another year of heavy losses, and the pressure to pay more attention to costs and margins has recently increased. In any case, the new focus on efficiency has so far been well received by shareholders. The stock has risen significantly since the first wave of layoffs.