Posts tagged spotify buys podcasts
Spotify To Remove Ad Blocking Users

Spotify will now suspend or ban accounts that use ad blocks “immediately”, the platform said in a recent announcement. The popular music streaming platform will be taking actions on free users who have installed ad blockers to keep Spotify from playing ads in the app. A reported 1.3% of the music streaming app were found using ad blockers on the free app. As evidenced by the quote below from a Spotify spokesperson in Digiday, the company has had enough of it.

“We take the artificial manipulation of streaming activity on our service extremely seriously. Spotify has multiple detection measures in place monitoring consumption on the service to detect, investigate and deal with such activity. We are continuing to invest heavily in refining those processes and improving methods of detection and removal, and reducing the impact of this unacceptable activity on legitimate creators, rights holders, advertisers and our users.”

The company has also updated their Terms and Conditions, stating “circumventing or blocking advertisements in the Spotify Service, or creating and distributing tools designed to block advertisements in the Spotify Service” may now result in “immediate termination or suspension of your Spotify account.”.

These terms are to be fully in effect by March 1st to disband any and all ad blocking users.

Spotify Buys Podcast Apps

Quite recently, Spotify has been on the hunt to build a podcast empire it seems. The music streaming platform has bought two podcast firms and plans to spend up to $500m on expanding the app’s capabilities from just playing music, to become a podcast app too. This newfound growth was kickstarted when the Swedish company acquired Gimlet, the podcast firm behind a variety of popular podcasts including Homecoming, which later adapted into a TV series on Amazon starring Julia Roberts. The company has also acquired another platform, Anchor, which is known for allowing individuals and companies to create, publish and monetise podcasts. There was no price disclosed of the purchase, however Gimlet was reported to be sold to Spotify at a cost of $230m of their $500m budget.

Founder and chief executive of Spotify, Daniel Ek, proposed the idea of tapping into the revenue streams of the rising interest in podcast apps. He said “We believe it is a safe assumption that, over time, more than 20% of all Spotify listening will be non-music content,” in a blog post. News of all this was revealed when Spotify announced its first ever quarterly profit. Their earnings from the first three months of 2018 amounted to approximately $106m (£82m), however it is expected to fall back into the red this year. 

Despite the paid subscriber number projected to rise from 117 million to 127 million, the company said its loss guidance for 2019 had increased from €200m to €360m.