Spotify is succeeding with podcasts and might consider offering them under subscription

Podcasts have become one of Spotify's stars. We have already seen the different exclusive proposals that have come to the platform by the hand of great celebrities.

And the strategy is paying off Spotify. As mentioned in your financial report, a quarter of your monthly active users choose podcasts on the platform.

In the fourth quarter, we had 2.2 million podcasts on the platform [...]. It should be noted that 25% of our total MEUs interacted with podcast content in the fourth quarter. [...] We continue to see strong growth in podcast consumption, with hours of consumption in the fourth quarter almost doping over since the fourth quarter of 2019.

Spotify — Spotify Technology S.A. Announces Financial Results for Fourth Quarter 2020 

And as repeated in different parts of the report, they consider podcasts to play an important role in audience growth. And along with this data, there is also the possibility that they consider different models to monetize podcasts.

This is not surprising at all, as we remember that last year, Spotify saw a survey detailing 4 different podcast-related plans. These plans ranged from $4 to $8 offering access to exclusive, ad-free podcast content (episodes, interviews, etc.).

Spotify mentioned that it was just one of its many routine surveys that aim to improve the user experience. However, in the Q&A section of the presentation of their quarterly report, they mentioned this topic again, and whether users would be willing to pay for podcasts.

Daniel Ek mentioned that it is still an evolving topic to see how to monetize audio on the internet, but there will be different models, either through ad-based subscription or other alternatives, that media companies will implement in the future. And without a doubt, Spotify will follow the same strategy.

Spotify Technology S.A. (SPOT) CEO Daniel Ek on Q4 2020 Results - Earnings Call Transcript | Seeking Alpha

A strategy that will be independent of the business model that Spotify implements for music content. Let's remember that podcasts are now available, without any restrictions, to both free users and those with premium accounts. Of course, with ads.

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