In fact, recent calls by record labels for an overhaul of the streaming model raises the prospect that costs could rise further. There has been no discernible reduction in music licensing costs. In reality, these benefits have failed to come to fruition. The company hoped podcasts would help to diversify its business model by reducing its reliance on expensive music licensing deals with record labels. Even Daniel Ek, Spotify’s co-founder and chief executive, admitted he got a “little carried away”.įor Spotify, podcasts offered a new way of attracting listeners to its platform, as well as splashy marketing opportunities to boost the brand. The podcasting dream now appears to be in disarray. In January it parted ways with Dawn Ostroff, the executive who masterminded the podcasting strategy, as part of broader lay-offs affecting 600 workers.Įarlier this month it made 200 employees redundant in a second wave of cuts and said it would merge Gimlet and Parcast, scaling back original programming and relying more heavily on deals with third-party producers. Now, just four years into its podcast push, Spotify is reversing course. Meanwhile, the company was beset with controversies surrounding Joe Rogan after the host spread Covid vaccine misinformation and used a racial slur.Īdding to the trouble has been a recent advertising downturn, which has put further strain on the ad-funded portion of the group’s “freemium” model. While Archetypes initially topped the charts, by November it had fallen to number 22. Yet the expansion has been plagued by difficulties. In 2021, Spotify’s ambitions were cemented in the form of Pod City, a dedicated campus in the heart of Los Angeles replete with studios, a stage and a piano once used by singer-songwriter Norah Jones. The company, flush with success after salvaging the music industry from the depths of piracy, then spent hundreds of millions on exclusive deals with celebrities, most notably outspoken US commentator Joe Rogan. Spotify’s push into podcasting took off in earnest in 2019, when the Swedish streaming platform spent more than $400m on the Gimlet and Parcast studios, as well as distribution software maker Anchor. “It hasn’t had a meaningful impact – in fact, it’s had a highly detrimental impact on their bottom line.” “Spotify just hasn’t succeeded in leveraging the consumption of podcasts,” says Alice Enders at Enders Analysis. That has not been the case and the streaming giant is now scrambling to cut its losses. The company spent huge sums on talent such as the Sussexes and Joe Rogan in the hopes that ad dollars would follow. The move is an embarrassing setback for the Duchess, who will reportedly not receive a full payout from the $20m deal.īut it is also the latest sign that Spotify’s big bet on podcasting has gone sour. The company has confirmed that Meghan’s Archetypes podcast, which featured high-profile guests including tennis star Serena Williams and singer Mariah Carey, will not be renewed for a second series. Two-and-a-half years later, however, Spotify has been dragged rapidly back to reality. “They are embracing the extraordinary capacity of podcasts on Spotify,” one executive said of the royal pair in an effusive press release. When Spotify struck a podcasting deal with the Duke and Duchess of Sussex in late 2020, the streaming giant’s unabashed pursuit of celebrity appeared to have reached its apogee.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |