[ad_1]
OPINION: It was a good race. But everything must come to an end. Good podcasts, which are free, will soon be a good memory.
This week Spotify purchased Gimlet Media, a leading podcasting company, valued at US $ 230 million (NZ $ 340 million).
The Swedish audio company has also purchased Anchor, a platform for users to create, distribute, host and monetize podcasts for undisclosed costs.
Is this a bad thing? I am not sure. Maybe not. But there is one thing I'm sure of. This means that the industry is about to question itself.
READ MORE:
* Spotify makes a big jump in podcasting
* Has the technology we used 10 years ago had a place in our lives today?
Why did Spotify buy Gimlet?
On the face of it, it may sound like a bad deal – $ 230 million for a company that sells its badets for free and relies solely on advertising for revenue, is risky.
But it is not as simple as that. Many podcasts yield nothing. Not a lot of money. No podcasting anyway.
ABIGAIL DOUGHERTY / STUFF
David Court says Spotify has paid Gimlet the big price to secure its content. And the content is king.
This is the reason why many podcasters choose to organize their shows on the road and perform live in local theaters to earn more money.
So why did Spotify pay so much for Gimlet? The answer is simple Content. And as everyone knows. The content is king.
Gimlet Media is probably best known for its Back home podcast with David Schwimmer and Catherine Keener. He then sold the television rights to Universal, which then sold the series to Amazon Prime.
And that's just one example of what good content can do.
Podcasting is still in its infancy. It is a sector that brings together professional journalists and independent broadcasters. And for the most part, there are no rules. Or paywalls.
When a new episode is ready, podcast producers upload their podcasts to their hosting platforms. ITunes, SoundCloud, Spotify and Google Play automatically badyze and display new episodes. Ready to be consumed by the listeners. Free.
And that's exactly what Spotify hopes to change. And then make money.
At present, nothing prompts a listener to consume a podcast via the Spotify app rather than the native Apple or Android Podcast app.
Everything is about to change.
Spotify founder and CEO Daniel Ek hopes the acquisition will help his company stand out in the podcasting business.
In a blog post, Ek said: "From the data of the radio industry, we believe that it is safe to think that, over time, more than 20% of listening to Spotify will be non-musical content. "
NETFLIX
Spotify is in a place similar to Netflix several years ago, before starting to produce his own shows like Stranger Things with Noah Schnapp, Sadie Sink and Caleb McLaughlin.
"That means a much faster growth potential with more original programming – and differentiating Spotify by playing on what makes us unique – all with the goal of becoming the world's first audio platform," said Ek.
"Our core business is doing very well, but as we deepen the audio, especially with the original content, we are expanding all of our business."
The purchase of Gimlet comes immediately after Spotify has released its first quarterly profit. Bank 106 million USD for the last three months of 2018.
In my opinion, Spotify is in a place very similar to Netflix many years ago. At the time, Netflix was a popular platform for video streaming with zero original content.
As an economic model, this position is weak. It depends on television and film production companies that license content at a lower price than it charges its subscribers.
Today, thanks to shows like Room of cards, Strange things and Make a murdererNetflix attracts customers with its own quality content.
This movement of Spotify is also wise. However, this probably also marks the beginning of the podcast wars.
A Spotify subscription costs $ 22.50 in New Zealand. It's a safe bet that exclusive podcasts will soon be an additional reason to attract customers to its platform. And far from its competitors, including Apple Music, Google Music, Amazon Music, YouTube Music and Tidal.
Is this a bad thing for podcasts? Honestly, I do not know. This means that they will not be as easily accessible as they are now. But it also probably means that the money will be invested in production and professionalism.
There is one thing I know. I would love to pay a subscription to a podcast if it brings me more quality content. It is a medium that I love and that I do not get tired of.
I am not alone in my love of the podcast. Recent research suggests that more than a third of people in developed countries consume podcasts at least once a month.
Watch this place.
Source link
