Spotify is fully committed to building a podcast network today. The music streaming giant has acquired Gimlet Media and Anchor to increase its podcast credentials as the company hopes to increase its share of the podcast market. Gimlet Media is a startup podcast network, and Anchor provides content creators with tools for creating, publishing, and monetizing podcasts. "In just under two years we have become the second largest podcasting platform," explains Spotify CEO Daniel Ek. "Our podcast users spend almost twice as much time on the podium and spend even more time listening to music."
Ek believes that Spotify's bet on podcasts will lead to 20% of all Spotify's audition as non-musical content in the future. "That means the potential to grow much faster with a more original programming – and differentiate Spotify by tapping into what makes us unique – all with the goal of becoming the world's number one audio platform."
Spotify is now planning more acquisitions for podcasts in 2019, and the company notes that it is willing to spend about $ 500 million to expand its podcast business this year. Recode Spotify paid about $ 230 million for Gimlet alone. Spotify also revealed today that it had 207 million active monthly users in the recent quarter along with 96 million paid subscribers. That's almost double the 50 million Apple Music subscribers CEO Tim Cook revealed in Apple's recent earnings release.
It's a bold goal and Spotify has already made deals to bring the original programs to your service. Amy Schumer de 3 girls, 1 Keith appeared on Spotify, and the service also obtained exclusive streaming rights for the upcoming Crimetown. The acquisition of Spotify on Gimlet will certainly help block more original content for the service and may attract people from rivals like Apple Podcasts or Stitcher.