Who is the CEO of Spotify?
Daniel Ek, chief executive officer and co-founder of Spotify AB. Spotify is making yet another podcast acquisition. The company said Tuesday it has agreed to acquire ad tech company Megaphone in a $235 million deal.
What is Spotify doing with its new podcast acquisition?
Spotify has been on a podcast acquisition tear in the past couple years, striking deals for shows from Joe Rogan, Kim Kardashian and Michelle Obama and buying companies like The Ringer and Gimlet Media. Now, it’s taking steps further to monetize all that content with the help of a new acquisition.
How many people listen to podcasts on Spotify?
In its most recent quarter, Spotify had 70.4 million users who listened to podcasts -- 103% more than a year ago. In November 2020, Spotify spent $235 million in cash to acquire the podcast advertising and publishing company Megaphone, essentially the next step up for podcasts after Anchor.
How do podcasts on Spotify get paid?
According to Spotify, approximately 75% of new podcast releases on the Spotify platform are powered by Anchor. On Anchor, advertisers approach podcasts on an individual basis with a script and a proposed price they're willing to pay per listen.
What podcast company did Spotify buy?
Spotify acquired Megaphone, a podcast advertising platform, for $235 million in November 2020.
What companies has Spotify acquired?
Discovery: Spotify acquired Podz in 2021, which enables listeners to more easily find new podcasts. Monetization: Spotify acquired Megaphone in 2020, which helps podcasters make money by inserting ads in podcast episodes.
Why does Spotify buy podcasts?
“These tools will make it easier for publishers to turn audience insights into action and expand their listenership while ultimately growing their businesses,” Spotify writes. This deal is particularly critical for the company as it tries to make its ad platform the best and most powerful in audio.
Does Spotify make money on podcasts?
The short answer is: No. Spotify does not pay for podcasts, but fret not! We have good news for you: There are many ways to monetize a Spotify podcast. You can make money on your podcasts through sponsorships, affiliate programs, ads, coaching, and more.
Which company makes two acquisitions in the podcast market?
Streaming-audio platform Spotify has announced its acquisition of two podcasting companies, each of which sheds some light on Spotify's long-term plan to dominate the podcasting business.
Why did Spotify buy anchor?
“As a result of rolling out these new formats that can't be experienced anywhere else, the consumption of Anchor-powered shows globally leans toward Spotify, with around 65% of their consumption happening on Spotify,” the company says.
How does Spotify make money from Joe Rogan?
As the New York Times points out, Spotify has acquired entire podcasting companies, such as the popular podcast producer Gimlet, for around the same amount that it's paying Rogan for a licensing deal. Spotify is simply paying for the exclusivity. Rogan keeps creative control and ownership over his show.
Do podcasts make money?
Do podcasts make money? Of course they do! Big names are getting large amounts of listeners and large amounts of ad revenue in return. According to AdvertiseCast, average 30-second CPM (cost per 1K listeners) rates are $18, while 60-second CPMs are $25.
Is Spotify making money?
In 2020, Spotify made a measly 6 million euros in gross profit from its ad-supported base. This year, it increased its gross profit by 1,850% to 117 million euros....Ad-supported users are growing faster – but there's a catch.User TierTotal subscribersGross MarginPremium180 million10%1 more row•Feb 9, 2022
Why is Spotify not profitable?
Investment thesis Its profitability has never been high due to rising operating expenses and currently the company seems overvalued despite the recent 70% drop. Spotify's calculated fair value is $70.56, so the bottom may not have been reached yet.
How much does Spotify pay for 1 million streams?
An artist can expect to earn between $1,000 and $8,000 for one million streams on Spotify, but it's more likely they will make about $4,000.
Does Apple pay for podcasts?
It pays to share your stories. After a subscriber accumulates one year of paid service, your net revenue increases to 85% of the subscription price, minus applicable taxes. Your other podcast revenue — including any ads — will stay 100% yours.
Does Spotify own any other companies?
In November 2021, Spotify acquired audiobook company Findaway, including its publishing imprint OrangeSky Audio. In February 2022, Spotify acquired Chartable and Podsights. Both are podcast advertising companies. In 2022, Spotify Greenroom rebranded as Spotify Live.
Does Jay Z own Spotify?
For some reason, some users are sure that the world-famous American rapper and multibillionaire Jay Z is the owner of Spotify. But this is not a correct assumption. In fact, in this case, users confuse the two well-known streaming services Spotify and Tidal. Jay Z does own a music streaming platform, but Tidal.
Does Amazon own Spotify?
As we have already mentioned, Spotify is not owned by Amazon, but it is an independent organization under “Spotify Technologies S.A.” and is currently headed by Daniel Ek. Headquartered in Stockholm, Sweden, Spotify is ranked 15 in the Unicorn list by Fortune.
Does Google own Spotify 2022?
Spotify and Google will remain as two independent companies in 2021.
Rivian files trademark for electric bikes
Electric vehicle maker Rivian filed a new trademark for bicycles and electric bikes, as well as their corresponding structural parts. The move might signal that Rivian is considering getting on the...
Rivian produced a skosh more than 1,000 electric vehicles in 2021
U.S. electric automaker Rivian reported Monday it produced 1,015 vehicles in 2021 — a figure that is in line with expectations that the company lowered last month. Rivian delivered 920 vehicles by ...
Moxie Marlinspike is leaving Signal
Moxie Marlinspike, the founder of the hugely popular encrypted communications app Signal, announced today in a blog post that he is stepping down in a move that he says has been in the works for se...
Peer-to-peer car-sharing company Turo files IPO to go public
Peer-to-peer car-sharing startup Turo has released its filing to become a publicly traded company in the United States, a process the company began confidentially in August. The S-1 document filed ...
Max Q: SpaceX kicks off 2022 in rocket launches
Welcome to Max Q, the TechCrunch newsletter that’s all about things blasting off. Or floating. Or I guess also crashing. Whatever happens in and on the way to space. We’re now into 2022...
The biggest news from CES 2022
Be it virtual, in-person or some mix of the two, CES is a beast. How could you keep up with all of the news flooding out of the show? You can’t, really. The big outlets each put a small army ...
Be aware: Your company is watching you
Call it the public service announcement to start off your year: If you’re working at a startup where IT is a little fuzzy, policies are evolving as the company is being built and the organiza...
How much did Spotify buy Megaphone?
The company said Tuesday it has agreed to acquire ad tech company Megaphone in a $235 million deal. The companies declined to say whether the deal was in cash, stock or a mix. Spotify shares were down 6.5% on Tuesday afternoon.
Does Spotify have advertising?
Advertising has constituted a relatively small portion of Spotify’s revenue, but the company’s leadership has said it’s optimistic about the advertising opportunity. During its third-quarter earnings, the company said 22% of its total monthly average users engaged with podcasts last quarter and that podcast ad revenue was up nearly 100% year over year. The company says its podcast catalog has more than 1.9 million titles.
Does Spotify own Megaphone?
Now, it’s taking steps further to monetize all that content with the help of a new acquisition. Spotify said it has entered into an agreement to acquire Megaphone, which offers technology for podcast publishers and advertisers seeking targeted slots on podcasts.
Does Spotify have a streaming ad?
After the transaction closes, Spotify said, it will make its “Streaming Ad Insertion” tool available to all podcast publishers through Megaphone’s technology, the first time it will open that tool beyond its own original and exclusive podcasts. The company has said that tool makes ads “targetable — they’ll be relevant to the people who get them;
Does Spotify have podcasts?
It offers podcast hosting, distribution and ad-insertion tools for podcast publishers like ESPN and The Wall Street Journal, and advertisers can use the company’s technology to find audiences across the podcast content of those publishers. Spotify has been on a podcast acquisition tear in the past couple years, ...
How much did Spotify buy Megaphone?
This morning, the streaming service confirmed its acquisition of Megaphone for a reported $235 million.
What is the Justice at Spotify?
Justice at Spotify demands better compensation and increased transparency for musicians. Justice at Spotify demands better compensation and increased transparency for musicians – TechCrunch.
How much does Stellantis invest in electric cars?
Stellantis, the global automaker born out of a merger between Fiat Chrysler Automobiles and French automaker Groupe PSA, will invest €30 billion ($35.5 billion) in electric vehicles and new softwar...
Is Megaphone a podcast?
Megaphone is the latest in a long line of recent podcast-centric acquisitions for Spotify, ranging from tens to hundreds of millions a pop. It should go a way toward cementing the company’s long-standing dream of become one of the medium’s biggest players.
Is Joe Rogan on Spotify?
Spotify signs ‘The Joe Rogan Experience’ to an exclusive multi-year deal. Over the past couple of years, Spotify has demonstrated a long-term commitment to the podcasting format by shelling out money hand over fist.
Is Spotify a podcast?
Spotify is on a buying spree, but all of their acquisitions are strategic, giving it a competitive advantage over other podcast platforms. This news comes the same week that Spotify hints at a subscription podcast service, according to The Verge. Apparently, a survey distributed via the Spotify app mentioned four possible podcast subscription plans, ranging in price from $3 to $8. A spokesperson said that there are no concrete plans for a podcast subscription, but it is seems like the company is testing the waters to see if there is interest in such a subscription option.
Is streaming ad insert available on Spotify?
“Once we come together, we will soon make Streaming Ad Insertion available to podcast publishers on Megaphone, the first time this technology will be made available to third parties. That means that podcast publishers will be able to offer more-valuable podcast audiences to advertisers based on confirmed ad impressions (i.e., that their ad was actually heard),” said Spotify in their November 10, 2020 announcement.
How much did Spotify spend on podcasts in 2020?
Megaphone. In November 2020, Spotify spent $235 million in cash to acquire the podcast advertising and publishing company Megaphone, essentially the next step up for podcasts after Anchor. The Megaphone Targeted Marketplace aggregates advertisers from all over and allows them to bid on the ad spots of different podcasts.
How much did Spotify pay to acquire Anchor?
Image source: Getty Images. It's reported that Spotify paid $150 million in cash to acquire Anchor back in 2019. While Anchor's financials aren't publicly disclosed, the acquisition looks appealing. Going after the podcast distributors instead of any specific content creators is a safer bet for Spotify.
How do these acquisitions impact Spotify?
However, it's safe to assume that both these companies have higher gross profit margins than Spotify's core business. Anchor and Megaphone are just ad marketplaces, much like Facebook. Users generate the content, advertisers bring the money, and the marketplace brings the two together. This type of business model requires a lot of up-front costs to develop a product and attract customers, but requires very few additional costs for each new customer.
How many users does Spotify have?
Spotify ( NYSE:SPOT) is the clear leader in the music streaming industry, with 320 million total monthly active users and more than double the paid subscribers of Apple Music, but its ambitions extend well beyond music.
What percentage of podcasts are powered by Anchor?
For first-time podcasters, this makes Anchor the most compelling place to start, and the data backs it up. According to Spotify, approximately 75% of new podcast releases on the Spotify platform are powered by Anchor.
What is an anchor podcast?
Anchor is the introductory operating system for podcasting. Launching a podcast can overwhelm new creators, but Anchor provides first-time podcasters with everything they could possibly need. With its easy-to-use platform and creator tools, podcasters can upload and edit their show, distribute it to the world, and instantly connect with sponsors at no cost. For first-time podcasters, this makes Anchor the most compelling place to start, and the data backs it up. According to Spotify, approximately 75% of new podcast releases on the Spotify platform are powered by Anchor.
Can podcasts accept sponsorship?
The podcasts can then accept or reject the contract, but advertisers have the ability to terminate the sponsorship at any time. This leaves the podcasts in a dangerous position, since there are no guarantees they'll be able to monetize each show, but at least the podcasts don't have to pay to be on the platform.