What has happened?
Spotify’s recent acquisition of podcasting publishing house Gimlet marks the biggest, and most significant sale in the industry to date. The $US230 million purchase accounted for approximately two-thirds of the entire industry’s revenue last year alone. This, compounded with their purchase of content-making tool, Anchor, (user-generated podcasting tool), puts Spotify in a position to develop and own IP on new shows made within this independent platform.
The Media Store Take
In a space where Apple has dominated through a content aggregation model, Spotify has the potential to be aggressors in this space by making existing popular podcasts, (such as Reply All and Homecoming), or newly developed Gimlet/Anchor podcasts, exclusive to their platform. Whilst it is unconfirmed if Spotify plans to keep these shows within their subscription paywall, the opportunity alone could have a great impact on their ability to increase ad spend, bring more users into their wider network, and keep them there longer. This potential for growth begs the question; how will Spotify exercise exclusivity in a market of typically unimpeded access to podcasts on all platforms?