Jul 30, 2021
Spotify makes money. The artists get a tier for every 301st stream
Spotify has acquired a number of content providers for its podcast service in recent years and they have good growth in the area. Advertising revenue on podcasts increased by 627 percent, which exceeded expectations.
Total time spent up 95 percent
Among Spotify users who initially listen to podcasts, listening increased by 30 percent on an annual basis. The total time spent was up 95 percent.
Spotify attributes its success to its own studios (The Ringer, Parcast, Spotify Studios, and Gimlet) and exclusive offerings such as "The Joe Rogan Experience" and Obama's Higher Ground studio. Spotify also refers to the acquisition of the podcast hosting and advertising company Megaphone.
Get options for the creators
In April, Spotify launched paid podcast subscriptions. Through the podcast host Anchor, creators can choose to post content behind a payment wall. Apple has launched a similar feature, but it is too early to say if the subscription services will work.
The stronger the Spotify platform, the fewer options creators will have for generating revenue from podcasts. The musicians have joined forces in Justice at Spotify to demand better compensation from Spotify. They point out that the artists receive an average of 0.0038 dollars per. flow. This means that a song must be streamed 263 times for them to earn one dollar, less than eight kroner - or 301 times to earn a Norwegian ti kroning.
Potential in live streaming
Spotify has grown that the musicians have had restrictions during the pandemic. Spotify sees streaming live performances as a potential way to increase revenue for musicians - and Spotify itself.
Spotify failed to reach its monthly active monthly goals in the second quarter, but paid subscriber growth and revenue increased.
365 million active users
Of Spotify's 365 million monthly active users, 165 million (approximately 42.5 percent) are paid subscribers - that is far more than its main competitor Apple Music, which had 60 million subscribers in 2019 but has not updated the numbers since.