Spotify starts to see returns on its investments in the podcasting side of their business.
This week, leading streaming platform Spotify, reported third quarter earnings maintaining its stronghold in audio. In a single quarter, and after planning to invest nearly half a billion to expand its podcasting business, grew podcast user engagement by 39% – increasing total podcast hours streamed by its 248 million monthly active users, up from 232 million users at the end of the Q2.
The strategic acquisitions of Anchor.fm, Gimlet Media, and Parcast earlier this year may be starting to pay off for Spotify – yesterday the company’s stock value went up 15% after a surprise report of profit. This is the third time in history the company has turned a profit (about $60 million).
According to Spotify’s news room, podcasts are driving user engagement and conversation with over 500,000 titles and counting, 22 of them newly launched original content shows are from the platforms own studio outfit. Spotify continues it’s podcast expansion strategy with a recent acquisition of SoundBetter, an audio production marketplace offering creators a place to connect with each other and hire services from fellow artists to collaborate and perfect their audio projects.
As a music platform first, the Spotify brand runs strong specifically amongst creators – tools for artists, managers, and labels are at the heart of the technology, enabling creators to run their own businesses. With the ability to communicate directly with fans to announce tours and new music, track performance analytics, and now incorporate tools like Canvas – a visual loop bringing artwork to life – Spotify’s toolbox offering creates a unique stickiness for creators competitors fall behind on.
Continuously expanding its offering, Spotify launched India earlier this year and recently went live with Duo, a unique membership that allows two or more users under the same roof to share an account at a discount. Duo is available in select countries throughout Europe and Latin America.
