Spotify Is Coming for Apple With a $500 Million Podcast Buying Spree
Its latest deals with Kim Kardashian and Joe Rogan are aggressive moves to combat commodification
Earlier this month, Spotify signed a deal with Kim Kardashian to co-produce and co-host a criminal justice podcast that will air exclusively on the platform. The deal with the reality TV megastar is only the most recent installment of Spotify’s investments in podcasts. In 2019, it acquired podcast companies Gimlet Media and Anchor for just under $340 million combined. In February 2020, it purchased The Ringer, Bill Simmons’ sports and pop culture publication and podcast network, for nearly $200 million. Last month, Spotify signed an exclusive agreement with podcast star Joe Rogan worth reportedly more than $100 million. Rogan’s show, The Joe Rogan Experience, consistently tops the podcast audience charts globally, with nearly 200 million downloads a month.
So, why is Spotify investing so heavily in podcasts? The largest reason is probably that its core business — music streaming — is an inherently low-margin business. This is due mainly to three factors.
