The earnings report for music and podcast streaming platform Spotify is in, and it seems like the company has a lot riding on its podcast business. It has signed some pretty huge deals since the start of the year, including “Call Her Daddy” and perhaps the biggest podcast on the planet “The Joe Rogan Experience”. Thanks to all these major bets, podcast streaming on the platform has seen a 30% increase year-on-year in terms of listening, with total hours consumed going up by a whopping 95%.
Podcasts seem to have become a major pillar of Spotify’s success, as the revenue coming in through this route went up by a mind-bogging 627%, smashing expectations. The company has attributed this growth to a similar, three digit year-on-year growth noted by its in-house studios, which include Spotify Studios, The Ringer, Gimlet, and Parcast, as well as the exclusive streaming deals it has forged with Higher Ground Studios and The Joe Rogan Experience.
CEO Daniel Ek explained, “The continued outperformance is currently limited only by the availability of our inventory, which is something we’re actively solving for. The days of our ad business accounting for less than 10% of our total revenue are behind us, and going forward, I expect ads to be a substantial part of our revenue mix.”