/cdn.vox-cdn.com/uploads/chorus_asset/file/23985252/VRG_Illo_STK130_K_Radtke_Spotify_Podcast_1.jpg "The Unexpected Derailment of Spotify’s Podcast Strategy")
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If you happen to be in the South of France this week for Cannes Lions, you might want to check out the extravagant four-day program organized by Spotify. They have lined up sound baths, beach-side mixers, masterclasses on podcasting, and panels with Spotify leadership and renowned podcast hosts like Emma Chamberlain and Alex Cooper. Attendees on Tuesday evening were treated to performances by Florence and the Machine, Will.i.am, and Jack Harlow on “Spotify Beach”.
However, if you are anywhere else, you may have reservations about getting too close to the streaming audio company. Over the past week, Spotify has faced several setbacks. First, Joe Rogan invited an anti-vaxxer presidential candidate on his show, which sparked controversy. Then, a $20 million podcast deal with a royal couple fell apart, leading to negative comments from a top executive. Adding to the turmoil are the layoffs that have been happening in Spotify’s podcast division. These events highlight the fact that Spotify’s podcast strategy is flawed and needs to be reevaluated.
Spotify’s approach to original content from its in-house studios was meant to be a key part of its podcast strategy. They acquired Parcast and Gimlet, two highly regarded studios, with Gimlet even winning a Pulitzer for its reporting this year. However, despite having talented staff and existing audiences, Gimlet and Parcast failed to attract large audiences and develop successful new shows. This can be attributed to Spotify’s lack of direction and knowledge in the podcasting space. By keeping certain podcasts exclusive to Spotify, the company actually saw a decrease in audience engagement. As a result, Spotify had to lay off over 200 employees from Gimlet and Parcast and merge what remained into Spotify Studios.
Another pillar of Spotify’s podcast strategy involved securing deals with celebrities to create original content. While some of these deals have been successful, such as David S. Goyer’s Batman Unburied and the scripted drama Case 63 featuring Julianne Moore and Oscar Isaac, many others have not lived up to expectations. The most troubled deal was with Prince Harry and Meghan Markle’s company, Archewell Audio, which recently came to an anticlimactic end. The lack of output from the couple led to the demise of the $20 million deal. Spotify even publicly criticized Archewell’s work, highlighting the studio’s failure to deliver multiple new series.
Spotify’s podcast strategy has been further marred by the termination of high-profile deals with other studios and creators, including Higher Ground, Brené Brown, and Ava DuVernay. The inability of these well-known figures to create successful podcasts shows that fame and reputation don’t guarantee success in the podcasting world. Even a podcast hosted by Barack Obama and Bruce Springsteen failed to make a significant impact.
Amidst all these challenges, the one celebrity deal that continues to be a focal point for Spotify is with Joe Rogan. Despite causing controversies and attracting criticism, Rogan remains the most listened-to podcast host in the country. However, these events highlight the inherent difficulties Spotify faces in managing its podcast business, especially when it revolves around one dominant creator.
As Spotify’s original content strategy falters, the company seems to be shifting its focus to its ability to sell ads. In a recent memo, Spotify’s head of podcasts emphasized the importance of delivering value for creators and users, which includes enhancing their advertising capabilities.
In summary, Spotify’s recent missteps demonstrate the challenges it faces in the podcasting industry. Its original content strategy has failed to attract large audiences and develop hit shows, while its celebrity deals have yielded mixed results. The company now seems to be betting on its advertising prowess as it navigates the complex world of podcasting.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
