Spotify's Podcast Listening Is Booming
Spotify (NYSE: SPOT) has been making some big bets on podcasting as a means of diversifying away from royalty-laden music streaming. It's still early in its efforts, but the results so far should encourage investors that the company is moving in the right direction.
"Our podcast audience grew more than 50% [sequentially] and has nearly doubled since the start of the year," management wrote in the company's second-quarter letter to shareholders.
It's actually seen that growth while investing less in original podcasts than it had expected. The company's second-quarter gross margin of 26% came in above its guidance in part due to "slower than anticipated release of original podcast content." As originals ramp up along with Spotify's continued efforts to push podcasts to its users, time spent listening should also increase.
Quelle Fool.com
