Analysts have weighed in on the expensive podcast investment by Spotify
As reported by CNBC, as of 2019 Spotify had spent multiple millions of dollars into podcast investment.
Naturally they needed to show their investors that the move would make a return on investment.
As per CNBC, Spotify’s tactic – Streaming Ad Insertion would be the money maker, with the key being to bring exclusive content to the app.
The intention would be to both strengthen advertising and increase their Premium subscribers.
And now as per a recent report from Citi analysts via CNBC, it seems that Spotify’s multimillion-dollar investment on podcasting may not be panning out as hoped.
Citi analysts wrote, “The cadence of Premium gross additions (through 3Q20) and app download data (through 4Q20) do not show any material benefit from recent podcast investments (that began in 2019).”
They also added, “To date, we have not seen a material positive inflection in app downloads or Premium subscriptions.”
This article originally appeared on The Industry Observer, which is now part of The Music Network.