USA: Everyone is getting into podcasting and working to secure the next big thing. The fight just got a lot tougher as Spotify entered the market. The streaming giant is looking for original podcasts to increase their non-music streaming. A podcast analytics service believe a goal should be a 10 per cent spoken content.
Among the podcast producers Spotify has been in touch with are Gimlet, How Stuff Works and Pineapple Street Media, according to sources Digiday UK has spoken to.
Spoken content could help raise the value of the streaming platform ahead of an IPO many expect to happen either this year or next. Podcasts are much cheaper to produce than video , but can command advertising prices that rival, or even surpass on-demand video content.
Spotify rely on expensive recorded music, which record companies and music publishers provide at enormous cost. As much as 70 per cent of revenue goes back to the record industry. Podcasts and spoken content is a way to increase time spent listening and bring down the cost.
To date, podcasts have fit awkwardly into Spotify’s product. It took nearly six months to roll them out widely after they were first announced in the spring of 2015, and even today, finding the dedicated podcasts section on Spotify’s apps takes some digging; they are still not available on the desktop version of Spotify’s app, and they’re tucked away in a corner of the mobile app.
The number of users that have bothered to look them, thus far, is quite small. For most podcast producers, Spotify accounts for less than 5 percent of their total shows’ listens.