What does Obama bring to Spotify?

Spotify reserves $ 500 million in podcast investments in 2019

Spotify (SPOT) hired former US President Barack Obama and his wife Michelle to provide podcasts for an international audience. The Obama will produce exclusive podcasts for Spotify through their production company, Higher Ground. Obamas podcasts will cover a wide range of topics. The former president said they would promote a productive dialogue, encourage people to think and make them smile.

Podcasting announces it as a lucrative business and Spotify does not want to be left behind. The company plans to spend up to $ 500 million in investments in podcasts, including strategic acquisitions, in 2019.

At the moment, podcasts are mainly monetized through advertising. The US podcast advertising market was valued at $ 169 million in 2016 and will reach $ 659 million in 2020, according to a study by Interactive Advertising Bureau and PricewaterhouseCoopers.

Pandora is also looking for podcast dollars. SiriusXM (SIRI) acquired Pandora for US $ 3.5 billion in a deal that was concluded early this year.

Obamas producing shows for Netflix

Last year, the Obama also signed a multi-year deal for the production of broadcasts for Netflix (NFLX), the king of video streaming. Netflix ended the first quarter with 60.2 million paying subscribers in the United States, compared with 26.8 million for Hulu. The Walt Disney Company (DIS) and Comcast (CMCSA) are co-owners of Hulu, with respective holdings of approximately 66% and 33%. AT & T (T) also owned a piece of Hulu but sold it a few months ago. Netflix signed a deal with the Obama to provide shows after Disney announced its intention to stop transmitting its content to Netflix.