Did Spotify Waste $1 Billion on Podcasts?
Spotify (NYSE: SPOT) has made some big investments in podcasting over the last few years. It acquired podcast networks like Gimlet Media, Parcast, and The Ringer, podcast technology companies like Anchor and Megaphone, and exclusive production rights for big celebrity names, including Joe Rogan, Michelle Obama, and Kim Kardashian.
Overall, Spotify spent close to $1 billion on podcasting-related acquisitions and production over the last two years, and some investors are starting to worry whether the company is getting its money's worth. Citi analyst Jason Bazinet downgraded the stock last week due to concerns that those investments aren't bringing in new premium subscribers or converting free listeners into paying customers.
Spotify CEO Daniel Ek. Image source: Spotify.
Source Fool.com
