Spotify's Podcast Investments Could Start Producing Profits Soon
Spotify (NYSE: SPOT) subscribers are listening to more and more podcasts as the company invests hundreds of millions into content and technology. While listening has increased, the content investments have been a drag on Spotify's gross margin. So far, Spotify hasn't been turning a profit on its massive podcast investments.
But podcast spending will reach more of a steady state going forward, and podcast listening growth doesn't appear to be slowing down. As such, CFO Paul Vogel thinks the inflection point on podcasts isn't too far away, and it'll be accretive to Spotify's overall gross margin in the near future.
Image source: Spotify.
Source Fool.com
