Piff Perkins
Veteran
what is Spotify’s play with these podcast? They still have to get people to subscribe.
Do they want people listening to podcast and not music?
the problem with podcast is that the catalog is largely worthless
To them, people are going to stream music regardless. Having Rogan ensures that a large segment of listeners will stream via Spotify instead of using other platforms. It's smart. But it's also a clear cut sign of what they think about music streaming.
Spotify has never had a positive net income at the end of a financial quarter. However their last two quarters had the lowest net losses on record. Podcasts offer an intriguing way to increase revenue and perhaps even hit net profits one day. Whereas they have to pay out money to multiple labels for streaming music, an internal podcast is going to have far lower costs for them. They probably don't even have to pay royalties for it. The incentive is clear.
The problem for Spotify is that artists aren't going to respect this, and anything that drives more people to Apple hurts Spotify. As Apple's streaming base continues to grow, artists may have an incentive to sign straight to Apple. We've seen this in the past to a degree, for instance Drake's temporary exclusive deal. What if Drake's next album is 100% exclusive to Apple? What if Adele follows suit? What if Rihanna signs an exclusive deal with Tidal and Apple? There are a lot of ways for Spotify to get fukked here. Unlike Apple, they don't have as many direct ties to labels as Apple. Interscope...