Yes, but: Podcasts aren't a profitable revenue stream for Spotify yet. "That is the one we are chasing," Ek said.
Spotify sees its best opportunity to make more money on podcasting in converting advertising dollars from linear radio into digital podcasting. Ek said that the company is experimenting with monetization efforts for its independent podcast platform Anchor, which it acquired in 2019. One area the company will focus on is making it easier for podcasters to make money through Spotify's ad infrastructure. "Part of the strategy when we bring someone like that on the platform is that it brings new people on, and it creates a better experience for those on platform whereby attention increases and churn (cancelled subscriptions) goes down," Vogel said.Ĭatch up quick: Spotify has also made huge investments in podcasting infrastructure over the past two years, leaving the platform poised to become a leader in audio production and advertising. Vogel noted that Spotify's exclusive podcast deal with popular podcaster Joe Rogan in particular has "contributed positively to user growth on the platform.". In the past year, the company has inked exclusive deals with major personalities ranging from Michelle Obama to Kim Kardashian. Spotify's enormous investments in original and exclusive podcasts are driving an uptick in engagement, Ek said. "That number is now closer to 1,000 people." "Three years ago, fewer than 30 people were actively producing content for the service," he said on the call. Ek said more people at the company are focused on producing podcasts now than ever. 
Podcast consumption hours in Q4 have nearly doubled since Q4 2019. "We want to make our platform the de facto platform for podcasts for Spotify users," Spotify's CFO Paul Vogel said on an investor call.īy the numbers: Spotify said that 25% of its total monthly active users engaged with podcast content in Q4, up from 22% in Q3 2020. Spotify said its primary focus is turning its massive existing user base into podcast users to increase engagement. Why it matters: Spotify CEO Daniel Ek told investors that podcasts and podcast usage are "highly correlated to user attention and growth" overall on Spotify, which is still primarily used to stream music.ĭetails: "Based on the behavior we see when users first join Spotify, we are confident that podcast usage has been a factor in the accelerated net additions," the company said in a statement. 
million today, the company announced on its Q4 earnings call Wednesday. Spotify has tripled the number of podcasts on its platform in the past year from 700,000 in Q4 2019 to 2.2.
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