LiveOne, a music and entertainment platform, intends to spin off PodcastOne into a separate entity in early 2023. Sirius XM paid a reported USD 150m for Team Coco Digital in May 2022 and USD 325m for Stitcher in mid-2020. Other acquirors of podcast assets abound, including Sirius XM, Amazon and iHeart Radio . But eventually it expects podcast margins to reach 40-50%, handily outperforming its music streaming side. In four years it acquired studios Gimlet Media, The Ringer and Parcast, podcasting distribution platform AnchorFM, advertising technology companies Megaphone, Podsights and Chartable, and podcast discovery company Podz.īecause of those investments, its podcast business has dragged down Spotify’s overall gross margins. Spotify has committed more than USD 1bn to podcasting. Going forward, she believes podcasting will be a USD 20bn opportunity. Podcast ad spend in the US grew from USD 479m in 2018 to an anticipated USD 2.1bn in 2022 – nearly double earlier projections – and should grow to USD 4.2bn in 2024, according to Dawn Ostroff, Spotify’s chief content and advertising business officer, speaking last June at the company’s investor day. Podcasting has become a far bigger opportunity for reaping advertising dollars than initially thought. Streamers need to differentiate themselves by adding new services, such as podcasts, audiobooks, the metaverse and gaming. After all, industry rights and licensing structures are similar everywhere. Music streaming offered by the likes of Spotify, Apple, Amazon, or Sirius XM has become commoditized, say music industry executives. Why now and how much running room is there for more consolidation? It saw hockey-stick growth through 2020, after which it has tailed off but remained strong. Led by Spotify, which has acquired at least eight US companies since February 2019 to become a global podcasting leader, dealmaking for North America-based podcast assets has soared. A two-decade-old concept, podcasting has only recently spawned a big round of consolidation.
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