Spotify has announced that it will acquire Gimlet Media, an independent podcast producer and home to shows like Reply All, and Anchor, a platform with tools for podcast creators. Although the official statement say Spotify isn’t disclosing the terms of the deal, rumours in recent weeks suggesting the acquisition was on the table have put the value around the $200 million mark.
So, why podcasts? Well, Spotify has tried various things to extend its reach beyond the realm of streaming music in recent years, like trying to add more video content to the platform. And actual content production is growing increasingly important in the streaming market (just look at all the original content Netflix is putting out) because it allows streaming companies to be more than conduits for third party content owners’ wares.
Gimlet is one of the best known and most successful podcast production companies, so the move could go some way toward helping Spotify generate both original audio content and earn revenue from it. It could also allow the company to branch out into selling ad space in podcasts. As for Anchor, it’s a company that makes it easy for anyone to record audio and distribute the recording directly from their smartphone… which ties in rather nicely.
“These acquisitions will meaningfully accelerate our path to becoming the world’s leading audio platform, give users around the world access to the best podcast content, and improve the quality of our listening experience as well as enhance the Spotify brand,” says Daniel Ek, Spotify co-founder and CEO. “We are proud to welcome Gimlet and Anchor to the Spotify team, and we look forward to what we will accomplish together.”
We’ll likely see these acquisitions finalised some time in the first quarter of 2019, and are excited to see what integrations will bring to our fave music streaming platform.