Spotify, the leading global podcast platform, has announced plans to distribute some original shows from its Gimlet Media production studio more broadly beyond the Spotify platform. While Spotify’s original intention was to draw in paying subscribers via exclusive content, the company’s new strategy involves expanding ad sales by broadening the distribution of some original podcasts like Science Vs.
Gimlet Media produces a range of popular podcasts, including Reply All, Crimetown, and Surprisingly Awesome. The company partnered with Spotify in 2019 to create a host of Spotify Originals like How to Save a Planet and Motherhackers. While some established Gimlet shows were widely distributed after the 2019 acquisition, this latest move involves distributing select shows on a case-by-case basis over time.
The move by Spotify to broaden the distribution of some Gimlet podcasts comes as a response to the need to increase audiences and ad sales potential. By tying a podcast to one subscription-based platform, the listenership is narrowed, reducing the demand for ad placement. However, this move does not necessarily spell the end of podcasts as a driving force behind Spotify subscriptions.
As the competition in the podcasting space heats up, with Apple, Amazon, and other major players all vying for a share of the market, Spotify’s move to broaden the distribution of select Gimlet podcasts could be seen as an attempt to remain competitive. It remains to be seen how successful this strategy will be, and whether it will help Spotify strike the perfect balance between subscriber growth and ad revenue.
