Spotify’s Podcast Strategy is Working so Far
Spotify (NYSE: SPOT) is the most popular digital music service in the world, boasting nearly 250 million customers worldwide to whom it gives access to millions of songs. But the digital music industry is competitive, and management rightly understands the need to turn to other avenues for growth. So far, Spotify hasn't exactly performed like other growth stocks, so maybe a new approach will help it turn the corner. The company decided to invest in the creation and production of original podcast content and vowed to divert a small fortune (between $400 million and $500 million to be exact) to this. In addition to partnering with various celebrities to create podcast content, Spotify made several moves to increase its presence in this market. Here are just some of the key acquisitions and partnership deals Spotify made to implement its podcast strategy:
Fortunately for Spotify, its podcast content strategy seems to be working, or at least that's what the company's third quarter financial results -- released on October 28th -- seem to suggest.
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Source Fool.com
