How Spotify Tried to Take Over Podcasting w/ Eric Silver
Jan 25, 2024
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Eric Silver discusses Spotify's attempt to dominate podcasting, the challenges faced by the podcast industry, the incorporation of video into podcasting, the impact of the ad market, the shift in podcasting content, and the financial expenses of podcast production.
Despite financial pressures, the podcast industry continues to thrive with loyal and engaged audiences.
Spotify's aggressive strategy of acquiring podcast studios and exclusive content has been reevaluated due to profitability concerns.
The integration of podcasting with video platforms like TikTok and YouTube poses challenges for driving podcast listenership.
Deep dives
The Rise of Podcasting in the Influencer Economy
Podcasting has become a prominent medium in the influencer economy, with its conversational nature and the ability to build strong relationships with listeners. This rise in popularity can be attributed to successful shows like 'StartUp' and 'Serial,' which captured the public's imagination. Major tech companies, like Spotify, have recognized the potential of podcasting and made significant acquisitions in the industry, including Gimlet, Anker, Parcast, and The Ringer, among others. However, there is a disconnect between the narrative of podcasts struggling and the actual growth in listener numbers and ad revenue. While some high-profile shows have faced cancellations or changes, podcasting as a whole remains a thriving platform with loyal and engaged audiences.
The Challenges and Changes in the Podcast Industry
The podcast industry has experienced major shifts and challenges, particularly for companies like Spotify. Spotify's aggressive strategy of acquiring podcast studios and exclusive content initially aimed at taking over the podcasting space. However, financial pressures and the need for profitability have forced a reevaluation of this approach. While some high-profile deals, like the exclusive $100 million contract with Joe Rogan, have garnered attention, the viability and sustainability of such investments have become questionable. Moreover, recent events, such as layoffs and changes to internal workings, suggest a pullback from the initial aggressive strategy. Despite these challenges, the podcast industry continues to evolve, with independent creators, conversational shows, and listener-supported models finding success.
Podcasting and the Push to Video Platforms
There is a growing trend in podcasting to integrate with video platforms like TikTok and YouTube. This move resonates with broader shifts in social media, where platforms are increasingly prioritizing video content. While video integration, such as creating clips for sharing on social media, has some potential benefits, questions remain about its effectiveness for driving podcast listenership. TikTok, for example, tends to keep users within the app, which can limit the potential impact on podcast downloads. Additionally, there is an ongoing tension between the traditional conversational nature of podcasting and the push for more video-oriented content. As podcasters navigate this landscape, their focus on maintaining meaningful relationships with their audience remains a vital factor in the success of the medium.
The Challenges of Monetizing Podcasts
The podcast discusses the challenges faced by podcast companies such as Gimlet and Spotify in monetizing their shows. It highlights how Gimlet, despite being acquired by Spotify, struggled to generate profits and relied on venture capital funding. The podcast also explores Spotify's approach of trying to enclose the podcasting industry and make shows exclusive to their platform, which ultimately resulted in a decline in downloads for certain shows. The discussion underscores the need for podcasting companies to find sustainable profit centers and not solely rely on acquisition or venture capital.
The Shifting Focus from Corporate to Independent Podcasting
The podcast delves into the shifting landscape of podcasting, with a refocusing towards independent and conversational content. It explores how the industry was initially built on the false assumption that podcasts would become centralized on platforms like Spotify and Apple, but this approach has largely failed. Instead, there has been a rise in the popularity of conversational podcasts, interviews, and community-driven content. The discussion highlights the importance of uniqueness and finding one's own voice in podcasting, as well as the potential for independent creators to sustain themselves through ad revenue, Patreon, and live shows. It also predicts a future where creators will start their own platforms and experiment with new forms of podcasting outside the realm of big tech companies.
Paris Marx is joined by Eric Silver to discuss Spotify’s big plan to dominate podcasting, why it’s now pulling back from those efforts, and the difference between highly produced and more independent podcasts.
Eric Silver is a podcast producer and head of development at Multitude.
Tech Won’t Save Us offers a critical perspective on tech, its worldview, and wider society with the goal of inspiring people to demand better tech and a better world. Support the show on Patreon.
The podcast is made in partnership with The Nation and produced by Eric Wickham. Transcripts are by Brigitte Pawliw-Fry.
Also mentioned in this episode:
Paris will be in Christchurch on February 4 (details here) and Wellington on February 8 (details here). He’s hoping to get an Auckland date organized and is open to going to Australia.
Spotify pulled back on its podcasting ambitions last year, canceling big shows and laying off staff.
After buying Gimlet and Parcast, it merged them into Spotify Originals last year.
Ashley Carman posted a slide from a Spotify presentation presenting the RSS feed as “outdated tech” because it’s harder for them to harvest data from.
